Wall Street Analysts Bullish on Circle After IPO, But Caution Over Valuation

• Circle Internet Group (CRCL) shares rose 1.14% to $182.49 in premarket trading after a 15.54% drop, following its IPO at $31 per share and a 160% surge since debuting at $69, marking the largest crypto listing since Coinbase’s (COIN) 2021 debut.
• Wall Street brokerages, including Barclays, Bernstein, Canaccord Genuity, and Needham, initiated coverage with buy-equivalent ratings and price targets above $200, citing Circle’s leadership in USD Coin (USDC) and regulatory advantages, while J.P. Morgan (JPM) and Goldman Sachs (GS) flagged valuation concerns with $80 and $83 targets, respectively.
• The U.S. Senate’s passage of the GENIUS Act in June, establishing a federal stablecoin regulatory framework, strengthens Circle’s position as a key blockchain infrastructure player, with its stock seen as a rare public investment in the digital asset space.

Shares of Circle Internet Group (CRCL) gained 1.14% to $182.49 in premarket trading on Monday, rebounding slightly after a 15.54% decline in the previous session, as Wall Street brokerages initiated coverage with a mix of optimism and caution following the company’s blockbuster IPO. Circle, a leading blockchain infrastructure firm known for issuing USD Coin (USDC), a U.S. dollar-backed stablecoin, debuted on the NYSE at $69 per share after pricing its IPO at $31, marking the largest crypto listing since Coinbase’s (COIN) 2021 debut. The offering, underwritten by J.P. Morgan (JPM), Citigroup (C), and Goldman Sachs (GS), has seen the stock surge over 160% since its market debut, reflecting strong investor enthusiasm for the stablecoin sector.

Wall Street’s response has been largely positive, with Barclays, Bernstein, Canaccord Genuity, and Needham launching coverage with buy-equivalent ratings and price targets exceeding $200, citing Circle’s market-leading position in digital dollar stablecoins, regulatory advantages, and robust distribution partnerships. Bernstein emphasized the difficulty of replicating Circle’s liquidity and infrastructure, positioning it as a key player in crypto trading, payments, and decentralized finance. The recent passage of the GENIUS Act in June, which established the first U.S. federal regulatory framework for stablecoins, further bolsters Circle’s outlook, with Barclays noting that CRCL offers public investors a rare opportunity to invest in blockchain infrastructure at a pivotal moment for the industry.

However, concerns about valuation have tempered some optimism. J.P. Morgan initiated coverage with an ‘Underweight’ rating and a $80 price target, suggesting a 56% downside from the stock’s last close of $180.43, while Goldman Sachs adopted a ‘Neutral’ stance with an $83 target, both citing the stock’s rapid post-IPO rise as a potential overvaluation. Despite these cautions, Circle’s role as a stablecoin issuer with a fully reserved USDC positions it to capitalize on growing adoption of digital assets in financial systems. The company’s ability to navigate regulatory landscapes and leverage its infrastructure will be critical as it competes in the evolving blockchain market, with investor focus likely to remain on its growth trajectory and valuation sustainability.

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