JPMorgan Initiates Coverage of Circle with Underweight Rating and $80 Target
JPMorgan (JPM) began coverage of stablecoin issuer Circle (CRCL) with an underweight rating and a price target of $80. Despite this, shares rose by 4.5% to approximately $189 at the time of publication.
- Circle's USDC stablecoin has an early-mover advantage and expanding payment use cases.
- Analysts recognize strong management but view the company's market capitalization as high.
- Circle's stock debuted at $31 and reached a peak of $299 last week.
- Bernstein initiated coverage with an outperform rating and a $230 target, labeling Circle as an "investor must-hold."
- Canaccord Genuity rated Circle as a buy with a $247 target, citing its potential for long-term success in digital money.
- Bernstein predicts the total stablecoin market cap could grow to $4 trillion in the next decade from today's $225 billion.