Monness, Crespi, Hardt initiates Circle Internet Group stock with Buy rating

Investing.com - Monness, Crespi, Hardt initiated coverage on Circle Internet Group (NYSE:CRCL) with a Buy rating and a price target of $150.00 on Monday. The stablecoin issuer, currently trading at $103.14 with a market cap of $23.87 billion, has seen analyst price targets ranging from $84 to $280, according to InvestingPro data.

The research firm cited Circle’s potential to bring "a meaningful, long-run chunk of M2 on chain" as a key factor in its bullish outlook for the stablecoin issuer.

Monness, Crespi, Hardt highlighted that stablecoins offer strategic advantages by supporting U.S. dollar hegemony while making global transactions more efficient and cost-effective.

The firm noted the valuation disparity between Circle and competitor Tether, pointing out that Tether’s private market valuation of approximately $500 billion (on a USDT market cap of $175 billion) represents a multiple of about 2.9x, while Circle trades at roughly one-third of its USDC stablecoin’s market cap.

For the near term, Monness, Crespi, Hardt sees potential upside to RLDC margin and dollar figures in Circle’s upcoming third-quarter 2025 earnings report scheduled for November 12.

In other recent news, Circle Internet Group has seen several updates regarding its financial outlook and strategic partnerships. Compass Point has adjusted its price target for Circle to $92, maintaining a Sell rating, while expecting the third-quarter adjusted EBITDA to exceed consensus forecasts by 8%. Tiger Securities also revised its price target to $140, citing lower projected reserve income despite an increase in stablecoin circulation. Notably, the average USDC in circulation reached $67.9 billion in the third quarter, reflecting a significant increase attributed to institutional adoption and a moderate rebound in the cryptocurrency market.

Clear Street initiated coverage of Circle with a Hold rating and a price target of $135, based on an evaluation of the company’s future EBITDA. Additionally, Circle announced a strategic partnership with Safe to enhance USDC self-custody solutions, aiming to establish Safe as a leading institutional storage solution. This collaboration is part of Circle’s efforts to strengthen its position in decentralized finance environments.

Bernstein SocGen Group reiterated its Outperform rating for Circle, with a price target of $230, amid investor concerns about new competition and potential interest rate changes. These developments reflect Circle’s ongoing efforts to navigate market dynamics and strategic growth opportunities.

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