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Investing.com - JPMorgan has raised its price target on Circle Internet Group (NYSE:CRCL) to $89.00 from $80.00 while maintaining an Underweight rating following the company’s second-quarter earnings report. According to InvestingPro data, the stock currently trades at a significant premium to its Fair Value, with analyst targets ranging from $84 to $280.
Circle reported its first earnings as a public company with a GAAP loss of $4.48 per share for the second quarter of 2025, primarily due to IPO-related stock-based compensation and fair value marking of convertible securities.
The company posted net revenue of $251 million and adjusted EBITDA of $126 million for the quarter, exceeding the consensus estimate of $121 million in adjusted EBITDA.
JPMorgan noted particular strength in Circle’s higher-margin business segments, including USDC on the Circle platform, which averaged $4.5 billion in the second quarter, and "other revenue" which reached $24 million.
Despite acknowledging solid quarterly performance and execution on IPO strategies, JPMorgan maintained its Underweight rating, citing flat USDC market share and high valuations, while the price target increase reflects strong growth in on-platform USDC.
In other recent news, Circle Internet Group, Inc. has announced the acquisition of Malachite, a consensus engine developed by Informal Systems, to support its upcoming Arc blockchain network. This new Layer-1 blockchain, specifically designed for stablecoin finance, is expected to enter its test phase later this year. Additionally, Circle has priced its public offering at $130 per share, with a total of 10 million shares available, including 2 million from Circle itself and 8 million from selling stockholders. Mizuho (NYSE:MFG) has reiterated its Underperform rating on Circle Internet Group, maintaining a price target of $84.00. This comes as Circle’s shares have experienced a decline of approximately 14% since August 11, 2025, ahead of its second-quarter earnings release. The company has also granted underwriters a 30-day option to purchase up to an additional 1.5 million shares. These developments reflect Circle’s strategic moves in both blockchain innovation and capital markets.
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