JPMorgan, one of the leading investment banks in the U.S., has begun analyzing Circle stocks, assigning an 'underweight' rating and setting a target price of $80 by December 2026.
Analysis Overview of Circle Stocks
JPMorgan analysts, led by Kenneth Worthington, have released the first official analysis of Circle stocks in the report 'North American Equity Research'.
Target Price and Market Predictions
The forecast, reduced by 55% from the current price of CRCL at $180, is based on a 45-times earnings-per-share (EPS) estimate for 2027, plus a $10 premium for projected growth. 'Our target price reflects a significant premium to the IPO price of $31, but also a considerable discount to the current stock price of $180,' stated the analysts.
Market Risks and Competition
JPMorgan analysts also pointed out potential risks related to competition that could impact the perceived value of the company in the future. This includes shifts in market positions towards companies with lower switching costs. Additionally, the increasing relevance of central bank digital currencies (CBDC) may create further challenges for Circle's long-term prospects.
JPMorgan's analysis highlights potential risks for Circle stocks despite their high current market value. Investors should pay attention to changes in the competitive landscape and potential impacts from new standards and regulations.
