Chris Fernando 
Major Wall Street financial institutions have initiated coverage of Circle’s stock following the conclusion of its mandatory quiet period. While several firms project significant upside, JPMorgan and Goldman Sachs have expressed caution regarding its current valuation.
On Monday, June 30, firms including Barclays, Bernstein, and JPMorgan released their initial ratings and price targets for Circle. Barclays, Bernstein, Canaccord Genuity, and Needham all set price targets for Circle’s stock above $200, suggesting an upside potential of approximately $15 per share from its current trading price of $185. These bullish projections emphasize Circle’s potential for stablecoin business expansion and its competitive advantages.
Bernstein analysts stated, “CRCL is building a market-leading digital dollar stablecoin network, with a strong regulatory edge, liquidity headstart and marquee distribution partnerships. This is hard to replicate, in our view.”
In contrast, JPMorgan and Goldman Sachs offered more reserved perspectives. JPMorgan set a price target of $80, which is 59% below the current trading price. While acknowledging Circle’s business model, the bank identified the valuation as excessive.
Kenneth Worthington, a JPMorgan analyst, commented, “Circle and USDC have an early-mover advantage in what has been a winner-takes-most market, driving USDC market capitalization to $62 billion. We think highly of the Circle management team and are confident in the outlook for outsized stablecoin and USDC growth. However, we see Circle’s current market capitalization elevated.”
Goldman Sachs analysts also adopted a cautious stance, initiating coverage with a neutral rating and a price target of $83 for the stock. James Yaro, from Goldman Sachs, stated, “Together, pending global stablecoin regulation that should favor adoption of compliant stablecoins like USDC, as well as continued new partnerships should drive continued market share gains.” He added, “We view CRCL’s business and growth attractively, but valuation appears elevated.”
