Experts from JPMorgan have presented their first assessment of Circle stocks, noting a significant decrease in projected value compared to the current market price.
Initial Analysis of Circle Stocks
JPMorgan analysts, led by Kenneth Worthington, have begun analyzing Circle (CRCL) stocks with an 'underweight' rating in their report titled 'North American Equity Market Research.' The price target for the stock is set at $80 by December 2026, indicating a 55% decrease from the current price of $180.
Stablecoin Market and Market Capitalization
JPMorgan stated that the current price of Circle stocks is overvalued, considering the company's market capitalization stands at $43.8 billion. Despite Circle’s strong position in the stablecoin market, where it was one of the first players, market realities may alter its valuation. Analysts noted that the target price of $80 implies a market capitalization of about $21 billion.
Risks and Competitive Environment
The report also highlights risks related to stablecoin regulation in the U.S. and competition in the market. JPMorgan warns of potential new requirements for stablecoin issuers that may affect their growth. Additionally, threats from central bank digital currencies (CBDCs) in other countries are considered, which could impact Circle’s global expansion.
JPMorgan's analysis indicates that while Circle is well-positioned in the market, it faces potential threats and a reassessment of its stock prices in the long term.
