Wall Street Bank Initiates Circle (CRCL) With Underweight Rating and $80 Price Target
In a surprising move, JPMorgan has initiated coverage of Circle (CRCL) — the issuer of the USDC stablecoin — with an underweight rating and a price target of $80, sharply below the stock’s current price of around $189.
“Circle’s valuation is outside our comfort zone,” said JPMorgan analysts, citing concerns about overvaluation following the company’s meteoric rise post-IPO.
Circle’s Stock Surges After IPO, Raising Valuation Concerns
Circle went public in June 2025, pricing its shares at $31, but the stock quickly soared to an all-time high of $299. The rally has raised red flags for some analysts, who now question whether current market prices reflect long-term fundamentals.
JPMorgan analysts, led by Kenneth Worthington, acknowledged Circle’s strategic position:
“We think highly of the management team and see upside in the stablecoin market, but the current market cap is elevated given recent gains.”
Despite its first-mover advantage in the digital dollar ecosystem, JPMorgan believes Circle’s valuation has run ahead of realistic near-term earnings.
Diverging Views: Bernstein and Canaccord Are Bullish
While JPMorgan took a cautious stance, other Wall Street firms are far more optimistic:
- Bernstein gave Circle an outperform rating with a $230 price target, calling it an “investor must-hold” in the digital dollar revolution.
- Canaccord Genuity issued a buy rating and set a price target of $247, highlighting Circle’s potential to lead in a multi-trillion-dollar market.
Both firms emphasized Circle’s regulatory edge, liquidity strength, and growing use cases in payments and tokenized finance.
Stablecoin Market Expected to Reach $4 Trillion
Analysts project the stablecoin market will grow from $225 billion today to $4 trillion over the next decade. With USDC already capturing a 25% share, Circle is seen by many as a top contender in the digital asset infrastructure space.
Still, JPMorgan’s conservative forecast reminds investors to weigh current valuations against future risks — particularly in such a nascent and rapidly evolving industry.
Conclusion: Bullish Future, But Valuation Matters
While Circle’s USDC adoption and strategic partnerships offer long-term potential, diverging analyst views highlight the uncertainty in pricing early-stage crypto leaders. For investors, the key will be balancing growth expectations with current valuations — and watching how Circle executes in a fast-growing yet volatile sector.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.