JPMorgan analysts have released a current assessment of Circle stocks, assigning them an underweight rating and setting a target price of $80.
Circle Stock Analysis
Analysts led by Kenneth Worthington presented their first formal analysis of Circle in the 'North America Equity Research' report. The forecasted target price, down 55% from the current $180, reflects a 45x multiple of projected 2027 earnings per share, plus a $10 premium for potential growth.
Expected Market Capitalization
Analysts expect Circle's market capitalization to be approximately $21 billion by late 2026. Currently valued at $43.8 billion, Circle has experienced significant growth since CRCL shares began trading on the NYSE with an $8 billion market cap.
Competition and Risks for Circle
The analysis highlights that competition in the volatile cryptocurrency environment poses a real threat to Circle. JPMorgan notes the need to consider various potential threats, including alternatives in the crypto investment space and regulatory changes. It also mentions risks stemming from the potential introduction of central bank digital currencies (CBDCs), which could impact Circle's global reach.
JPMorgan’s analysis emphasizes Circle’s challenging position amidst high market expectations and increasing competition in the stablecoin sector. The forecasts indicate a need for adaptation in a rapidly changing environment.
