Stablecoin issuer Circle Internet Group (CRCL) has received a rare double upgrade from U.S. bank JPMorgan Chase (JPM).
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JPMorgan analyst Kenneth Worthington lifted his rating on CRCL stock to a Buy-equivalent overweight from underweight and raised his target for the share price to $100 from $94 previously. The new price target is 20% above where Circle’s stock is currently trading.
The double upgrade comes as CRCL stock is badly bruised and battered. The share price is down 16% in the last five trading sessions following an earnings report that left investors underwhelmed. Circle went public earlier this year, and after rising to just under $300 a share in June, the stock has collapsed 72% to now trade at $83.
Reason for Hope
Despite the volatility and sharp downturn, JPMorgan analyst Kenneth Worthington says there’s reason to believe CRCL stock can still be a winner. Circle is the issuer of USDC, one of the largest stablecoins by market capitalization. And Worthington expects the market for stablecoins to explode in coming years. Stablecoins are cryptocurrencies pegged to another asset, typically the U.S. dollar or price of gold.
Worthington adds that he saw encouraging signs in Circle’s recent financial results. “The quarterly results indicate to us that stablecoins are continuing to make their way into mainstream financial services, with USDC a leading stablecoin and Circle a leading partner,” wrote the analyst in a note to clients.
Is CRCL Stock a Buy?
The stock of Circle Internet Group has a consensus Moderate Buy rating among 15 Wall Street analysts. That rating is based on eight Buy, four Hold, and three Sell recommendations issued in the last three months. The average CRCL price target of $163.21 implies 94.95% upside from current levels.
