Citi Begins Coverage on Circle With a Buy Rating, Forecasts Strong Upside
Citigroup has initiated analyst coverage on Circle (CRCL), endorsing the company with a Buy rating and forecasting a potential 34% rise in share value. The firm set a target price of $243, compared to Circle’s closing price of just over $181 on Monday.
Despite Circle’s impressive performance since going public, Citi considers the stock’s valuation still reasonable. The stablecoin issuer’s shares debuted at $31 and surged to a high of $299 last week before pulling back to current levels.
Stablecoins, such as those issued by Circle, are digital currencies pegged to fiat or commodities and serve vital roles in cryptocurrency ecosystems, particularly for trading and global payments.
The Citi report, led by analyst Peter Christiansen, identified Circle’s neutrality as its strategic advantage in a growing but competitive stablecoin sector. The report also highlighted Circle’s operating efficiency, market potential, and recent favorable regulatory trends as key reasons for its long-term growth outlook.
“Circle’s value proposition lies in its neutrality and ability to remain the preferred option in a fragmented stablecoin environment,” the analysts wrote.
Thanks to its capital-light business model and strong operational leverage, Citi believes Circle could deliver strong returns if it secures a significant portion of the expanding stablecoin market.
However, not all analysts are as bullish. JPMorgan, which also launched coverage on Circle Monday, took a more cautious stance by assigning it an Underweight rating, citing concerns over the stock’s current valuation.
