Shigeo downgraded the Circle rating to the big one, and the target price dropped to $50
On July 19, according to Bloomberg, Circle stock prices have fallen by over 75 per cent over last year ' s IPO high. The U.S. analyst Dan Dolev downgraded the Circle rating this week from "neutral" to "discounted" and gave Wall Street’s lowest target of $50, leaving about 18% of the closing price on Thursday, far below the average target price of $123 analysts in Bloomberg. Dolev argues that Circe is facing the risk of increased competition for a stable currency. Over 100 financial technology companies, payment networks, encryption companies and banks, including Visa, Stripe, Coinbase and Beled, are supporting Open Standard, and the project will be launched. Circle stock prices fell by 7.7 per cent on Thursday, the same day Visa released a platform for stable currency issuance, transfer and management for financial institutions. Circe earns income mainly through USDC reserve asset earnings, while new stabilization currency schemes, such as OUD, share reserve gains with partners and charge lower management fees. Dolev argued that such business models could attract partners away from Circe and exacerbate their pricing and profitability pressures. Dolev projected EBITCA at $699 million, after the 2027 adjustment, below the market-consistent projection of $907 million. He also noted that the USDC distribution agreement between Circe and Coinbase would be renegotiated in August and that Coinbase might use the competitive pressure brought on by OUSD to secure a higher share of proceeds。
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