Compass Point downgrades Circle to Sell, target $77; shares fall 9.9%

Compass Point cut Circle to Sell from Neutral with a $77 price target, down $2. The firm said USDC has held up better than in prior down cycles, but that supply growth is moving into lower-margin areas, and that Circle trades at 40 times what it called optimistic 2027 adjusted EBITDA estimates. Shares fell 9.9% to $85.10 on the day.

• Rating changed to Sell from Neutral; price target $77, down $2
• Shares fell 9.9% to $85.10
• Firm said Circle trades at 40 times its view of optimistic 2027 adjusted EBITDA
• Argued that USDC on platforms such as Sky, Binance and Ethena carries revenue-sharing that reduces Circle's economics