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Investing.com -- Circle Internet Group’s growing role in digital payments and stablecoins is drawing attention from analysts, but lofty valuations are keeping calls restrained.
Oppenheimer assumed coverage of Circle with a Perform rating, highlighting the company’s position as issuer of USDC, the second-largest stablecoin, and its push to expand into business payments and international markets.
Analysts said Circle stands out by pairing regulatory transparency with tools that let businesses move money in real time, but cautioned that the stock has already surged 331% since its IPO and trades at 65 times 2026 EBITDA estimates.
The firm lifted its revenue and profit forecasts, citing stronger demand for USDC across digital asset trading, decentralized finance and tokenized applications.
Analysts also pointed to rising use of dollar-backed instruments in overseas markets where local currencies are unstable, as well as Circle’s efforts to build out cross-border settlement for businesses.
Regulation is another tailwind. The GENIUS Act, signed in July, requires stablecoins to be fully backed and regularly audited, reinforcing Circle’s claim to credibility.
A separate bill, the CLARITY Act, could further define oversight between U.S. agencies if passed later this year, reducing legal uncertainty for USDC and related services.
Still, Oppenheimer noted that much of Circle’s revenue comes from interest income tied to short-term Treasuries, leaving it sensitive to Federal Reserve rate cuts expected later this year.
The firm raised its 2025 revenue estimate to $954 million from $891 million and projected $1.1 billion for 2026, with adjusted EBITDA climbing to $533 million.
“While Circle is unique among peers, we retain our perform rating considering valuation,” analysts wrote, describing the company as a long-term growth story but one where upside may already be priced in.