Morgan Stanley Circle Holdings Surge 470% Despite Rating Downgrade

Morgan Stanley cut Circle’s target to $38 and rating to ‘Reduce’ citing USDC contraction, yet 13F filings reveal a 470% stake increase to 8.32M shares by June 30.

Woofun AI reports that Morgan Stanley downgraded Circle Internet Group shares from "Hold" to "Reduce" on August 3, lowering the target price from $106 to $38. Analysts cited shrinking USDC circulation and a shift toward lower-margin revenue streams as primary drivers, while reducing 2027 and 2028 volume forecasts by approximately 33% and 44%. Conversely, the firm's latest 13F filing disclosed holdings rising from 1.46 million to 8.32 million shares as of June 30. This data reflects positions held prior to the August downgrade, highlighting a divergence between institutional research views and disclosed historical stakes.