Circle Internet (CRCL) sank 15.5% on Tuesday, wiping out billions in market value. The decline followed new coverage from US Tiger Securities analyst Bo Pei, who initiated the stock with a Hold rating and a $200 price target. While Pei sees Circle as a leading name in the stablecoin space, he believes the current stock price already reflects much of its long-term potential.
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Pei’s Views About CRCL Stock
Pei highlighted Circle’s early lead in creating regulation-friendly stablecoins. He noted that USDC (USDC), the company’s flagship token, is currently the most compliant digital dollar available. According to the analyst, Circle benefits from strong institutional trust and policy alignment — especially with the recent GENIUS Act that sets clear rules for stablecoins — positioning it well as the industry moves toward greater regulation.
He also pointed to Circle’s wide distribution network for USDC as a key edge. This includes major trading platforms like Coinbase (COIN), partnerships with banks, and a broad base of developer support. Pei said this wide access makes it easier to use USDC across financial systems. As the rules become clearer, Circle’s trusted network could help it grow faster and gain more market share.
However, Pei remains cautious about Circle’s long-term goals. He said its push into payments and financial infrastructure is promising but will take time, with success hinging on stronger blockchain adoption and clearer government policies, both of which are still in early stages.
From a valuation point of view, the analyst believes Circle stock is expensive at current levels. He estimates that it is trading at around 59 times expected 2026 EBITDA, suggesting that much of the company’s future upside is already priced in.
While the long-term story is compelling, the analyst believes it’s too early to chase the stock and prefers to stay on the sidelines for now.
Is CRCL Stock a Buy Today?
Using TipRanks’ technical analysis tool, the indicators seem to point to a positive outlook for CRCL stock, thanks to four Bullish indicators and one Neutral indicator. However, it is worth noting that since the company recently went public, there is not enough data to fully analyze its technical patterns.
