Wall Street Weighs In on Circle’s Stock: Divergent Views emerge
Circle’s IPO has sparked interest among Wall Street firms. On June 30, major financial institutions started covering teh stock after the quiet period ended. Barclays, Bernstein, and JPMorgan released their ratings and price targets.
Several firms, including Barclays and Bernstein, set Circle’s stock price target above $200. This suggests an upside potential of about $15 per share from its current price. The bullish outlook hinges on Circle’s potential to grow its stablecoin business and its competitive edge.
“Circle is creating a leading digital dollar stablecoin network. This is difficult to replicate,” noted Bernstein analysts.
However, not everyone is optimistic.JPMorgan and goldman Sachs offered more cautious views. JPMorgan set a price target of $80, 59% below the current trading price of $185. While praising circle’s business model, they flagged the valuation as too high.
“Circle and USDC have an early-mover advantage, but the current market cap seems elevated,” said Kenneth Worthington, a JPMorgan analyst. Goldman Sachs also started coverage with a neutral rating and a price target of $83.
“We see Circle’s business and growth as attractive, but the valuation appears high,” stated James Yaro from Goldman Sachs. Despite the mixed opinions, Circle’s future in the stablecoin market remains a topic of interest.
