Bernstein initiates coverage on Circle Internet Group, praising leadership in stablecoin sector.

From Yahoo Finance: 2025-07-01 21:30:00

Bernstein initiates coverage on Circle Internet Group (NYSE: CRCL) with an Outperform rating and $230 price target, praising their leadership in the stablecoin sector. The firm projects the stablecoin market to reach $4 trillion in the next decade, with Circle poised to capture a significant share due to regulatory advantages and strong partnerships.

Circle’s USD Coin (USDC) is expected to play a crucial role in internet-scale payments. Analysts see Circle as a “must-hold” stock for investors interested in digital dollar networks beyond crypto trading. The GENIUS Act’s regulatory framework gives Circle an edge as the largest regulated stablecoin issuer in the U.S.

Circle’s USDC is widely used on major crypto exchanges like Coinbase and Binance, establishing a strong liquidity network. Bernstein’s valuation forecasts a 47% revenue growth rate from 2024 to 2027, driven by increasing USDC supply. Adjusted EBITDA is expected to grow by 71% annually over the same period.

Despite sensitivity to interest rate cuts, Circle’s revenue model is expected to thrive due to USDC supply growth. Drawdown phases may offer entry points for long-term investors. Bernstein’s valuation assumes Circle will maintain a 30% stablecoin market share, with a target valuation reflecting ~35x 2027 adjusted EBITDA.

Read more: Circle Stock Is A ‘Must Hold,’ Says Bernstein: Here’s Why