Mizuho Downgrades Circle to Underperform, Citing OpenUSD Competition May Squeeze Margins

Odaily Odaily Planet Daily News Mizuho has downgraded Circle from Neutral to Underperform, lowering its price target from $85 to $50, citing rising competitive pressure from OpenUSD. The bank stated that OpenUSD’s pass-through model may force Circle to share more reserve income with distribution partners, thereby compressing profit margins. Mizuho has reduced its forecast for Circle’s 2027 adjusted EBITDA to $699 million, approximately 25% below the Wall Street consensus estimate, and warned that the upcoming renewal of the Coinbase revenue-sharing agreement could add further pressure. (CoinDesk).