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Investing.com - Seaport Global Securities initiated coverage on Circle Internet Group (OTC:CRCL) with a buy rating and a $235 price target on Friday. The stock currently trades at $199.59, near its 52-week high of $200.90, after surging nearly 50% in the past week. According to InvestingPro analysis, the company maintains a "GREAT" financial health score.
The research firm views Circle as a "top-tier crypto ’disruptor’" with significant future growth potential, particularly as the regulatory environment for cryptocurrencies improves.
Seaport Global expects global adoption of stablecoins like USDC, Circle’s flagship product, to grow rapidly, with the stablecoin market potentially reaching $2 trillion over the longer term from approximately $260 billion currently.
The firm projects Circle will generate annual revenue growth of 25%-30% with gross margins around 40%, while demonstrating ability to drive operating leverage as it scales further.
Seaport Global forecasts Circle will outperform most fintech companies during 2025-2026, justifying a premium valuation multiple, with the $235 price target based on 15 times the company’s projected 2026 enterprise value to sales ratio.
In other recent news, Circle Internet Group has made significant strides following the U.S. Senate’s approval of a stablecoin bill, which has been a pivotal development for the cryptocurrency sector. The legislation, known as the GENIUS Act, aims to establish regulatory rules for stablecoins, requiring them to be backed by liquid assets like U.S. dollars and short-term Treasury bills. Circle, which issues the USDC stablecoin, saw its stock rise substantially, with shares jumping 16% in morning trading after the bill’s passage. The company also reported a successful initial public offering, raising approximately $1.2 billion as underwriters fully exercised their option to purchase additional shares. This IPO, led by major financial institutions such as J.P. Morgan and Goldman Sachs, has set a new benchmark for the crypto industry, with Circle’s stock price climbing from an IPO price of $31 to $107 in its debut week. Analysts from Bernstein predict that the stablecoin legislation could transform stablecoins into a key component of the internet’s financial infrastructure. Furthermore, the Bybit Crypto Insights Report highlights Circle’s IPO as a reflection of the favorable climate for crypto in the U.S., suggesting potential for more blockchain firms to enter the capital markets.
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