Mizuho lowers Circle rating to underperform, says OpenUSD competition may compress profit margins
2026-07-14 17:01
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 firm stated that OpenUSD's pass-through model may force Circle to share more reserve income with distribution partners, thereby compressing profit margins. Mizuho lowered its forecast for Circle's 2027 adjusted EBITDA to $699 million, approximately 25% below Wall Street consensus estimates, and warned that the upcoming renewal of the Coinbase revenue share agreement could add further pressure. (CoinDesk).
