Circle receives bullish ratings from analysts, but concerns over high valuation remain

From Yahoo Finance: 2025-06-30 08:00:00

Wall Street brokerages have given bullish ratings to stablecoin issuer Circle Internet Group, but some analysts are concerned about its high valuation. The company’s shares were down nearly 3% in premarket trading. Circle debuted with a blockbuster IPO at $69 per share, with lead underwriters including J.P. Morgan, Citigroup, and Goldman Sachs.

After the quiet period expired, Barclays, Bernstein, Canaccord Genuity, and Needham all launched coverage with ‘buy’ ratings and price targets above $200. Bernstein analysts praised Circle’s market-leading digital dollar stablecoin network and regulatory edge. The company is best known for issuing USD Coin (USDC), a U.S. dollar-backed stablecoin widely used in crypto trading and payments.

The U.S. Senate passed the GENIUS Act in June, establishing the first federal regulatory framework for stablecoins. Barclays views Circle as a key player in the blockchain infrastructure theme, while J.P. Morgan and Goldman Sachs are cautious about the stock’s high valuation. J.P. Morgan started coverage with an ‘underweight’ rating and a price target of $80, implying a 56% downside from the stock’s last close of $180.43.

Goldman Sachs also expressed concerns about the stock’s valuation, starting coverage with a ‘neutral’ rating and a $83 price target. Circle’s shares have surged 161% since their market debut. The company’s rapid rise has raised questions about its valuation, despite its strong business and growth potential.

Overall, Circle Internet Group has garnered positive attention from Wall Street brokerages, with many analysts optimistic about its future in the blockchain infrastructure space.

Read more: Wall Street analysts bullish on Circle after blockbuster IPO, but warn on sky-high valuation