Two of Wall Street’s research desks landed on opposite sides of Circle Internet Group, with TD Cowen starting coverage of the stablecoin issuer at a buy while Morgan Stanley moved to a sell-equivalent rating, leaving investors to weigh a rare split verdict on the same company.
Why TD Cowen rates Circle a buy
TD Cowen initiated coverage of Circle Internet Group (CRCL) at a buy rating, signaling the desk expects the shares to outperform from current levels. For related coverage, see Ben Cowen Predicts Ethereum Unlikely to Hit New Highs.
A buy rating is a call that a stock has upside relative to its price, and it puts Circle among the names TD Cowen views favorably. The firm has been vocal on the sector before, arguing that crypto-linked companies deserve closer attention from equity investors. For related coverage, see Bybit to Suspend Zircuit (ZRC) Deposits and Withdrawals on August 4, 2026.
Circle is the issuer behind USDC, one of the largest dollar-pegged stablecoins, which anchors the bullish thesis to the growth of on-chain dollar settlement rather than to speculative token prices. For related coverage, see Bybit schedules UNITREEUSDT perpetual pre-market listing for August 3, 2026.
Why Morgan Stanley says sell on Circle
Morgan Stanley took the other side, downgrading Circle Internet to underweight from equal weight, a sell-equivalent stance that flags expected underperformance.
An underweight rating tells the market to hold less of a stock than its benchmark weight, typically reflecting valuation concern or skepticism about near-term results. The downgrade directly challenges the upside case, framing Circle as a name to trim rather than accumulate.
The bearish shift coincided with pressure on the stock, which fell more than 5% in a single session, underscoring how sensitive the shares are to shifting analyst sentiment.
What the split Wall Street view means for investors
Conflicting calls on the same stock matter because they signal genuine disagreement over valuation and outlook, not a settled consensus. When a buy and a sell land close together, the divergence itself becomes the story for sentiment.
Circle reported its first-quarter 2026 results earlier this year, and its earnings cadence gives investors a concrete data point to test which thesis holds up. Circle also features in the broader calendar of closely watched crypto earnings that shape near-term positioning.
For now the key divide is straightforward: TD Cowen sees a buy tied to stablecoin adoption, while Morgan Stanley sees downside worth underweighting. Investors watching Circle will look to upcoming results and USDC growth to break the tie.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
