Mizuho downgraded Circle's rating to underperform, stating that OpenUSD competition may compress profit margins

Mizuho downgraded Circle's rating from Neutral to Underperform and lowered the target price from $85 to $50, citing increasing competitive pressure from OpenUSD.

The firm stated that OpenUSD's direct pass-through model could force Circle to share more reserve income with distribution partners, thereby compressing profit margins. Mizuho lowered Circle's adjusted EBITDA forecast for 2027 to $699 million, approximately 25% below Wall Street consensus expectations, and warned that the upcoming Coinbase revenue sharing renewal could increase pressure.