A Big Opportunity Beckons for Circle Stock, Says Seaport

Circle (NASDAQ:CRCL) has been on the public markets for barely two weeks but investors can’t seem to get enough of the stablecoin issuer’s shares. The stock has surged more than 664% since its IPO debut at $31 on June 5.

Friday is proving to be another good day for this high-flyer, building on the momentum seen since the Senate approved the GENIUS Act, which lays out a federal framework for stablecoin usage. Passed on Tuesday, the legislation paves the way for stablecoins to be used by banks, fintech companies, retailers, and other institutions.

As the largest U.S.-based stablecoin issuer and the company behind USDC – the second-largest stablecoin – there’s clearly strong investor enthusiasm surrounding this name at the moment. But are those humongous gains justified? Seaport analyst Jeff Cantwell thinks so. “We view Circle as a top-tier crypto ‘disruptor’ with a sizeable future opportunity,” Cantwell said. “On the back of an improving regulatory climate, we expect adoption globally of stablecoins such as USDC, Circle’s flagship product, grows rapidly from here…”

Cantwell sees the total stablecoin market cap climbing to $500 billion by the end of next year, up from about $260 billion right now, believing that over the longer term it could ultimately grow to as much as $2 trillion. Areas such as DeFi, cross-border payments, and ecommerce could experience explosive growth in stablecoin usage. Cantwell sees Circle holding onto its current ~25% market share – or even increasing it – as it continues to make progress both in the U.S. and internationally. As this plays out, Cantwell anticipates Circle delivering annual revenue growth in the range of 25% to 30%, with gross margins around 40%. With continued scaling, the company should also be well-positioned to unlock further operating leverage.

Furthermore, the launch of the Circle Payments Network (CPN) on May 21 adds a compelling, “’company specific catalyst” on top of the broader regulatory tailwinds. CPN is designed to link financial institutions and enable real-time, low-cost payments – initially focused on cross-border transactions. Cantwell thinks there’s potential for this to be a “disruptive service” in areas such as supplier payments, remittances, and payroll. Over time, he expects CPN to build on the momentum Circle has already achieved with USDC and serve as another key driver of growth.

“Bottom line,” Cantwell summed up, “we expect Circle will perform much stronger than most Fintechs over the course of ’25/’26, and believe it merits a premium valuation multiple.”

To this end, Cantwell initiated coverage of CRCL shares with a Buy rating and $235 price target. However, such has been the strength of the rally, the shares have already taken out that target. (To watch Cantwell’s track record, click here)

Cantwell is the first on the Street to weigh in here but watch out for other analysts offering their takes on Circle shortly. (See Circle stock overview)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.