Wall Street Divided: JPMorgan & Goldman Slam Circle’s ’Overheated’ Valuation While Crypto Bulls See Opportunity
Wall Street's heavyweights are clashing over Circle's stock—again. JPMorgan and Goldman Sachs just flashed warning signs on the stablecoin issuer's valuation, calling it 'stretched' amid regulatory headwinds. But crypto natives aren't backing down.
Here's the rift:
• The Bears: Traditional finance giants see Circle's $9 billion market cap as unsustainable, citing shrinking USDC market share and SEC overhang.
• The Bulls: DeFi traders are stacking the dip, betting Circle's Treasury yields and institutional adoption will eclipse short-term noise.
One Goldman analyst quipped: 'When crypto bros and Jamie Dimon agree on risk, it's time to check your spreadsheet.' Meanwhile, USDC's 24-hour trading volume spiked 17% as the debate raged—proving once again that in crypto, nobody actually cares what bankers think.
Circle is likely overvalued: Goldman Sachs, JP Morgan
Still, while most ratings are bullish, JPMorgan and Goldman Sachs offered more cautious perspectives. JPMorgan set a price target of $80—59% below the current trading price of $185. While the bank praised Circle’s business model, it flagged the valuation as excessive.
“Circle and USDC have an early-mover advantage in what has been a winner-takes-most market, driving USDC market capitalization to $62 billion. We think highly of the Circle management team and are confident in the outlook for outsized stablecoin and USDC growth. However, we see Circle’s current market capitalization elevated,” Kenneth Worthington, JPMorgan analyst.
At the same time, the investment bank Goldman Sachs agreed with the sentiment. Analysts from Goldman Sachs started the coverage with a neutral rating and put the price target on the stock at $83.
“Together, pending global stablecoin regulation that should favor adoption of compliant stablecoins like USDC, as well as continued new partnerships should drive continued market share gains,” James Yaro, Goldman Sachs, stated. “We view CRCL’s business and growth attractively, but valuation appears elevated,” he added.
