H.C. Wainwright Starts Circle Internet Group (CRCL) at Neutral

H.C. Wainwright analyst Mike Colonnese initiates coverage on Circle Internet Group (NYSE: CRCL) with a Neutral rating and a price target of $85.00.

The analyst comments "Current valuation fully reflects near-term opportunity set. Circle has put its stake in the ground as one of the most regulatorily compliant stablecoin issuers in the crypto ecosystem, a dynamic that we believe will enable the company to continue to win market share over the coming years as global adoption of U.S. dollar backed stablecoins accelerates amid regulatory tailwinds in the U.S. and abroad. We view Circle’s flagship product, USDC, as a best-of-breed USD-backed stablecoin in a winner takes most market with a massive TAM. However, we view the risk/reward profile of CRCL as well-balanced at current levels based on Circle’s near-term growth prospects and the valuations ascribed to other digital asset equities. We would need to see a step function change in USDC circulating supply to offset near-term margin headwinds from Fed rate cuts and rising distribution costs to get more constructive on the name and to justify a higher valuation. All said, we see limited upside at current levels, as implied by our $85 price target, as we initiate coverage with a Neutral rating. In our report, we dive deep into the stablecoin industry, the market opportunity, and why we believe Circle has created a differentiated product, network, and competitive moat."

For an analyst ratings summary and ratings history on Circle Internet Group click here. For more ratings news on Circle Internet Group click here.

Shares of Circle Internet Group closed at $80.99 yesterday.

You May Also Be Interested In

• BTIG on Liquidia Technologies (LQDA): 'strength today can likely be attributed to the Supreme Court '
• Bernstein SocGen Group Starts Terawulf Inc. (WULF) at Outperform
• Raymond James Reiterates Strong Buy Rating on Tyra Biosciences (TYRA)