Key Points:
- JPMorgan began coverage of Circle with an underweight rating and a price target of $80.
- Analysts consider Circle’s market cap to be excessive, especially after its significant increase following the IPO.
- Notably, other brokers like Bernstein and Canaccord have positive outlooks on Circle, with buy ratings and higher price targets.
Circle is leveraging an early-mover advantage with its USDC stablecoin, which has multiple applications in payments. Although analysts express confidence in Circle’s management and stablecoin growth, the elevated market capitalization led to caution with the underweight stance.
Other analysts from Bernstein and Canaccord view Circle favorably, expecting substantial growth from the stablecoin sector, projecting that the total market cap could reach $4 trillion in a decade from the current $225 billion.
