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. 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. TD Cowen expects USDC circulation to grow at roughly a 31% compound annual rate through 2030 and believes fee-based revenue from products including the Circle Payments Network, Cross-Chain Transfer Protocol, StableFX and Arc will expand substantially faster than reserve income, reducing the company's dependence on interest rates over time. Related articlesCircle split as Morgan Stanley cuts to Underweight, TD Cowen starts at BuyUBS downgrades NXP to Neutral on China auto risks, trims PT to $270Truist upgrades Corning to Buy after pullback, sees AI demand driving upside