JPMorgan Initiates Coverage on Circle with Underweight Rating Amid Valuation Concerns

Wall Street giant JPMorgan has initiated coverage of stablecoin issuer Circle with an underweight rating, citing valuation concerns despite acknowledging the company's strong positioning in the digital dollar ecosystem. The bank set an $80 price target for CRCL shares, which currently trade around $189—a 4.5% gain at publication time.

Analysts led by Kenneth Worthington praised Circle's management team and the growth trajectory of its USDC stablecoin, which benefits from first-mover advantage and expanding payment use cases. However, the report contends the company's market capitalization appears elevated compared to its $31 IPO price, even after retreating from last week's $299 peak.

Diverging views emerge across Wall Street, with Bernstein initiating coverage at outperform and a $230 target. Analyst Gautam Chhugani calls Circle "an investor must-hold," highlighting its regulatory edge and distribution partnerships in the burgeoning $225 billion stablecoin market—a sector Bernstein predicts could reach $4 trillion within a decade.