Aaron McDade
2 min read
In This Article:
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Several Wall Street analysts on Monday launched coverage of Circle Internet Group, following the stablecoin issuer's initial public offering earlier this month.
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Analysts from Bernstein put a $230 price target on the stock, calling Circle a "long term must-hold as a stablecoin category leader."
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Other analysts from JPMorgan and Goldman Sachs were more cautious, raising concerns about its current valuation.
Several Wall Street analysts on Monday launched coverage of Circle Internet Group (CRCL), following the stablecoin issuer's initial public offering earlier this month.
Bernstein analysts were among the most bullish with an "outperform" rating and $230 price target, calling Circle a "long term must-hold as a stablecoin category leader and for investors wanting to be exposed to Circle’s long-term transformative payments' story."
Other brokers were more cautious, as analysts from Goldman Sachs and Oppenheimer issued neutral ratings. Goldman put an $83 price target on the stock, implying an over 50% decline from Circle's intraday price near $183, while Oppenheimer did not provide a target.
Goldman analysts said they "view CRCL’s business and growth attractively, but valuation appears elevated." Oppenheimer analysts, meanwhile, said they have a "very favorable view" of Circle's business, but recommend "investors wait for a better entry point" like future legislation milestones or quarterly reports.
JPMorgan analysts were more bearish, with an "underweight" rating and $80 price target, citing similar concerns the stock may be overvalued.
Circle made its debut on the market earlier this month, and shares have surged nearly 500% from their IPO price of $31. Shares more than doubled in value their first day of trading, and rallied to a peak of $263 last week as Congress made progress on passing stablecoin-related legislation.
Circle's success could also speak to strong demand for new crypto-related listings, with more on the way. The Winklevoss twins' Gemini and Peter Thiel-backed Bullish reportedly filed earlier this month for their own debuts.
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