Mizuho Predicts 15% Further Decline for Circle (CRCL) Amid Stablecoin Pressures
Mizuho Securities analyst Dan Dolev slashes Circle Internet Group's price target to $70, marking the lowest on Wall Street. The revision reflects a 15% downside from current levels, with Dolev maintaining his 'Sell' rating. Historical IPO data spanning 750 listings over 20 years suggests Circle's stock hasn't found its floor yet.
Competition in the stablecoin sector intensifies as Circle, issuer of the second-largest stablecoin by market share, faces headwinds from rate cuts and escalating distribution costs. Despite CRCL's 41% plunge over three months, Dolev's model indicates further underperformance—58% of post-lockup IPOs that initially beat the S&P 500 later trailed the index by 2% within six months.