Citi Initiates Coverage of Circle with Buy Rating and $243 Price Target
Circle (CRCL) is positioned as a key player in stablecoin adoption, according to Citigroup's recent research report. The bank initiated coverage of the stock with a buy/high risk rating and set a price target of $243, indicating a potential upside of 34% from its last closing price.
- Circle’s IPO was priced at $31, reaching a record high of $299 before dropping to $181.
- The report highlights Circle's advantages: scarcity value, large market opportunity, and legislative momentum.
- Analysts noted the importance of Circle's neutrality and its defense against stablecoin fragmentation.
- Circle can generate substantial excess returns due to its operating leverage and low capital intensity.
In contrast, JPMorgan began coverage with an underweight rating, citing concerns over Circle's valuation.