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Mizuho downgrades Circle to "Underperform," citing competition from OpenUSD as a potential threat to profit margins
Svmuu News: Mizuho downgraded its rating on Circle from Neutral to Underperform and lowered its price target from $85 to $50, citing mounting competitive pressure from OpenUSD.The bank noted that OpenUSD’s direct-to-consumer model could force Circle to share more reserve revenue with distribution partners, thereby squeezing profit margins.Mizuho lowered its 2027 adjusted EBITDA forecast for Circle to $699 million, about 25% below Wall Street’s consensus estimate, and warned that the upcoming renewal of revenue-sharing agreements with Coinbase could add to the pressure. (CoinDesk).
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