5 hours ago
Wall Street heavyweight JPMorgan (JPM) initiated sum of stablecoin issuer Circle (CRCL) with an underweight standing and an underwhelming $80 terms target.
The shares were trading 4.5% higher astatine astir $189 astatine work time.
Circle is good positioned, the slope said, and its USDC stablecoin has an "early-mover advantage," with increasing usage cases successful payments.
"We deliberation highly of the Circle absorption squad and are assured successful the outlook for outsized stablecoin and USDC growth," analysts led by Kenneth Worthington wrote.
Still, the analysts spot the company's marketplace capitalization arsenic elevated, and initiated sum with an underweight rating. The banal priced astatine $31 a stock successful its archetypal nationalist offering (IPO), and deed a grounds precocious of $299 past Monday.
Other Wall Street analysts were not arsenic bearish. Broker Bernstein initiated sum with an outperform standing and a $230 terms target, saying Circle was an "investor must-hold."
"CRCL is gathering a market-leading integer dollar stablecoin network, with a beardown regulatory edge, liquidity headstart and marquee organisation partnerships," analysts led by Gautam Chhugani wrote.
Bernstein is besides bullish astir the wider stablecoin market, and expects full marketplace headdress to scope astir $4 trillion successful the adjacent decennary from $225 cardinal today.
Rival broker Canaccord Genuity started sum of Circle with a bargain standing and a $247 terms target.
The firm's analysts presumption the issuer of USDC arsenic "having galore of the cardinal attributes that could marque it a semipermanent victor successful this perchance precise ample and caller marketplace for genuinely integer money."
Read more: Circle Mania Grips South Korea arsenic Retail Investors Pile Into Stablecoin Play
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