Mizuho cut its Circle price target to $43 from $45 and maintained an Underperform rating, implying a potential 46% decline in the stock. According to the analyst, AI agents such as Muse could steer users away from USDC toward FDIC-insured bank products offering higher yields, even when users state that they prefer digital assets. Mizuho estimates that this shift could reduce USDC’s market capitalization by $4 billion to $9 billion over the medium term and Circle’s reserve revenue by 10% to 20%, with reserve income accounting for 95.2% of the company’s revenue in the second quarter of 2026. After Circle generated approximately $1.4 billion in revenue during the first half, Mizuho lowered its 2027 adjusted EBITDA forecast by 5%, while the shares fell between 3% and 7% following the report.
Source: Read the original article
