Investing.com -- Wall Street analysts took sharply divergent views on Circle Internet Group on Monday, with Morgan Stanley downgrading the stablecoin issuer to Underweight and slashing its price target, while TD Cowen initiated coverage with a Buy rating, arguing the company's broader financial infrastructure ambitions remain underappreciated. Morgan Stanley cut its rating from Equal-weight to Underweight and lowered its price target to $38 from $106, citing slowing USDC growth, rising competitive pressures and concerns that Circle's transition toward transaction-based revenue will take longer and prove less profitable than the market expects. The firm reduced its USDC circulation forecasts by about 33% for 2027 and 44% for 2028, driving earnings estimates roughly 20% below Wall Street consensus for 2028. The brokerage argued stablecoin usage remains heavily concentrated in crypto trading and transfers rather than payments, limiting the durability of USDC balances. Related articlesCircle split as Morgan Stanley cuts to Underweight, TD Cowen starts at BuyNvidia's new Alpamayo project: What it means for Tesla?