Mizuho Downgrades Circle to Underperform, Cuts Price Target to $50

Mizuho downgraded Circle Internet Group to Underperform from Neutral and cut its price target to $50 from $85, citing rising competitive pressure from OpenUSD. Circle shares fell 4.1% to $60.47 after the downgrade, according to Barron's.

The Japanese investment bank cited concern that OpenUSD's pass-through structure could force Circle to share more reserve income with distribution partners, compressing margins. Mizuho also lowered its 2027 adjusted EBITDA estimate for Circle to $699 million, about 25% below Wall Street consensus.