Citi Initiates Coverage on Circle with Buy Rating, Sees 34% Upside

Citigroup has launched coverage of Circle (CRCL) with a buy rating, asserting the stablecoin issuer's valuation remains attractive despite its recent rally. The bank set a $243 price target, implying 34% upside from current levels. Circle shares have surged since their $31 IPO price, peaking at $299 last week before settling at $181.

Stablecoins—cryptocurrencies pegged to assets like the U.S. dollar—are becoming increasingly vital for crypto markets and cross-border payments. Citigroup highlights Circle's "scarcity value" and operational leverage as key advantages in what could become a winner-takes-most market. Analysts note the company's neutrality positions it well against potential stablecoin fragmentation risks.

The endorsement comes as institutional interest in crypto infrastructure grows. Circle's USDC stablecoin ranks among the most widely used, benefiting from regulatory tailwinds and the broader adoption of blockchain-based financial solutions.