Mizuho Downgrades Circle to Underperform, Sets $50 Target Price with 18% Downside on July 19

According to Bloomberg, Mizuho Securities analyst Dan Dolev downgraded Circle's rating from neutral to underperform on July 19, setting the lowest Wall Street target price at $50, implying approximately 18% downside from Thursday's close. The price target is significantly below the consensus analyst average of $123. Circle's stock has fallen over 75% from its IPO peak last year.

Dolev cited intensified stablecoin competition, noting that over 100 fintech companies, payment networks, crypto firms, and banks—including Visa, Stripe, Coinbase, and BlackRock—are backing the Open Standard initiative to issue OUSD. Circle derives revenue primarily from USDC reserve yields, while new stablecoins like OUSD plan to share reserve yields with partners at lower management fees, potentially pressuring Circle's pricing and margins.