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Investing.com - Mizuho has lowered its price target on Circle Internet Group (NYSE:CRCL) to $84.00 from $85.00 while maintaining an Underperform rating on the stock. The target represents a significant downside from the current trading price of $163.21, with InvestingPro data showing the stock trading at a steep P/E ratio of 509x.
The price target adjustment follows Circle’s second-quarter earnings report, after which the stock initially rose mid-teens before fading to close up approximately 1%, in line with the NASDAQ’s performance on the day. This modest daily gain adds to an impressive 96.1% return over the past six months, though InvestingPro analysis suggests the stock is currently overvalued. Discover 15+ additional exclusive insights and real-time metrics with InvestingPro.
Mizuho cited three key reasons for the stock’s fade and its continued bearish outlook, including a significant gap between Circle’s long-term USDC growth targets of 40% CAGR and the current quarter-to-date growth of only 6%.
The firm also pointed to growing distribution costs as a concern for Circle’s business model going forward.
Additionally, Mizuho noted that cooling CPI, while positive for the broader economy, represents a negative factor for Circle Internet Group’s business prospects.
In other recent news, Circle Internet Group reported its second-quarter 2025 earnings, highlighting strong revenue growth despite posting a negative earnings per share of -4.48 USD. The company also announced a public offering of 10 million shares of its Class A common stock, with 2 million shares offered by Circle and 8 million by selling stockholders. Additionally, Circle is expected to grant underwriters a 30-day option to purchase up to an additional 1.5 million shares. Tiger Securities recently lowered its price target for Circle Internet Group from $200 to $180, maintaining a Hold rating due to concerns over margin pressure. The firm noted that RLDC margin deterioration is occurring even as Circle’s USDC balances grow, with expectations of further compression in the latter half of 2025. These developments reflect ongoing changes within Circle Internet Group as it navigates market dynamics and investor expectations.
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