Bernstein Sets $230 Target for Circle Stock
Bernstein analysts have started coverage on Circle with a positive rating and a $230 price target. Circle, a USDC stablecoin issuer, had a successful IPO on June 5, massively oversubscribed and climbing 167% on its first day. Despite corrections and volatility, the analysts see Circle as crucial in the next decade's internet-scale financial system. The stablecoin market is projected to swell to $4 trillion, with Circle positioned strongly thanks to the GENIUS Act. However, Circle's market share is expected to grow modestly. The stock reflects high investor interest, trading at a notable EBITDA multiple, with significant growth projections in revenue and EBITDA from 2024 to 2027. Despite competitive pressures, particularly from Tether, analysts hold a favorable view of Circle's future.
FAQ
❓ What is Circle's role in the digital dollar network?
Circle aims to lead the digital dollar stablecoin network, supported by strong regulatory frameworks and significant liquidity.
❓ Why does Bernstein value Circle at $230 per share?
Bernstein uses a 10-year discounted cash flow model, predicting significant revenue and EBITDA growth for Circle.
❓ How does Circle's market position compare with Tether's?
Circle is expected to grow modestly in market share but remains secondary to Tether, which holds a dominant 65% of the stablecoin market.