Mizuho analysts lowered the price target for Circle Internet Group from $45 to $43, maintaining an Underperform rating. The firm suggests that AI personal assistants, such as Muse, pose a risk to revenue by directing users toward bank products with higher yields instead of USDC.
The report estimates that this shift could reduce USDC market capitalization by $4 billion to $9 billion in the medium term. This decline could lead to a 10% to 20% drop in Circle’s reserve revenue, which accounted for 95.2% of the company's total revenue in the second quarter of 2026.
Circle reported revenue of approximately $1.4 billion for the first half of 2026. Following the report, Mizuho reduced its 2027 EBITDA forecast for the company by about 5%. Circle shares subsequently fell between 3% and 7%, trading in the range of $80 to $83.
The company is scheduled to release its third-quarter financial results on November 4. Mizuho previously raised concerns regarding competitive threats to the issuer in July 2026.
