JPMorgan initiates Circle Internet Group coverage with underweight rating

Published 30/06/2025, 08:18
JPMorgan initiates Circle Internet Group coverage with underweight rating

Investing.com - JPMorgan initiated coverage on Circle Internet Group (OTC:CRCL) with an underweight rating and a $80.00 price target for December 2026. The company, currently trading at $180.43, has seen its stock surge over 116% in the past six months, according to InvestingPro data.

The investment bank views Circle as well positioned in the developing stablecoin market, where digital cash applications are rapidly emerging. JPMorgan notes that Circle and its USDC stablecoin have established an early-mover advantage in what has been characterized as a winner-takes-most market.

This advantage has helped drive USDC’s market capitalization to approximately $62 billion, according to the research note. The firm identifies current use cases including stablecoins functioning as digital cash in cryptocurrency markets and as a store of value for users outside the United States.

JPMorgan expects additional use cases to develop in cross-border and consumer payment sectors. The bank expressed confidence in Circle’s management team and forecasts "outsized stablecoin and USDC growth" in the future.

Despite these positive factors, JPMorgan considers Circle’s current market capitalization to be elevated, leading to the underweight rating despite the company’s strong positioning in the stablecoin market. This assessment aligns with InvestingPro analysis, which indicates the stock is trading at a high P/E ratio of 829x and appears overvalued based on its Fair Value calculations. For deeper insights into Circle’s valuation metrics and 18 additional ProTips, consider an InvestingPro subscription.

In other recent news, Circle Internet Group has been the focus of analyst attention, with Bernstein initiating coverage with an outperform rating and a $230 price target. The firm highlights Circle’s strong position in the digital dollar stablecoin market and its strategic partnerships as key advantages. Additionally, Seaport Global Securities has given Circle a buy rating, setting a $235 price target, citing the company’s potential for significant growth in the stablecoin sector. In a strategic move, Circle has announced a collaboration with Fiserv (NYSE:FI) to develop stablecoin-enabled solutions aimed at enhancing payment experiences for financial institutions and merchants. This partnership will integrate Circle’s USDC infrastructure with Fiserv’s digital banking capabilities, providing access to digital dollar infrastructure. Meanwhile, Fiserv has announced plans to launch a new digital asset platform, which will include a stablecoin called FIUSD, leveraging technology from Circle and Paxos. This platform aims to democratize access to blockchain financial services and is expected to be operational by the end of the year. These developments underscore Circle’s expanding role in the evolving financial ecosystem.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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