Mizuho Securities downgraded its Circle rating to underperform the market, with a target price of $50

According to Bloomberg, Mizuho Securities analyst Dan Dolev downgraded his Circle rating from neutral to underperforming the market, with a target price of $50, which is $123 lower than the analyst average target price. Dan Dolev believes that Circle is facing increased competition from stablecoins, and new projects such as OUSD may exacerbate pricing and profit margin pressures for Circle. Dan Dolev expects Circle's adjusted EBITDA for 2027 to be $699 million, lower than the market consensus expectation of $907 million. The USDC distribution agreement between Circle and Coinbase will be renegotiated in August.