Circle Internet Group stock rating reiterated at Underperform by Mizuho

Published 15/08/2025, 11:24
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Investing.com - Mizuho has reiterated its Underperform rating and $84.00 price target on Circle Internet Group (NYSE:CRCL), currently trading at $139.23 with a market cap of $31.94 billion. According to InvestingPro data, the stock is trading near its Fair Value, with analyst targets ranging from $80 to $280.

Circle shares have declined approximately 14% since the market close on August 11, 2025, prior to its second-quarter earnings release, while the S&P 500 gained about 2% during the same period.

Mizuho identified several factors contributing to the stock’s decline, including structural issues such as rising distribution costs and minimal quarter-to-date growth in USDC, the company’s stablecoin. The firm also noted technical factors, particularly the sale of 10 million shares, representing approximately 5% of shares outstanding.

The research firm warned of potential additional pressure on Circle’s stock based on its analysis of the company’s prospectus. According to Mizuho, if the stock price remains 15% above the public offering price 30 days following the prospectus date, an additional 10 million shares (about 5% of shares outstanding) will be sold.

Mizuho concluded that even if Circle’s stock recovers from current levels, renewed pressure on the equity is expected due to these prospectus conditions.

In other recent news, Circle Internet Group announced the pricing of its public offering, setting 10 million shares of Class A common stock at $130 each. The offering includes 2 million shares from Circle and 8 million from selling stockholders, with an option for underwriters to purchase an additional 1.5 million shares. Bernstein SocGen Group reiterated its Outperform rating on Circle, maintaining a price target of $230. Meanwhile, Baird adjusted its price target for Circle to $185, while keeping a Neutral rating. Mizuho also revised its price target to $84, maintaining an Underperform rating on the stock. These developments follow Circle’s first quarterly earnings report since its initial public offering.

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