Needham bullish on Circle, initiates with a Buy

As previously reported, Needham analyst John Todaro initiated coverage of Circle (CRCL) with a Buy rating and $250 price target. The firm views stablecoins as a fast-growing paradigm shifting part of the financial ecosystem. KeyBanc expects USDC to be dominant within. Its thesis is underpinned by USDC dominance as the “reserve asset” in DeFi; share gains on USDT as the GENIUS Act comes into effect; international stablecoin adoption as a conduit for USD growth globally; upside in payments and remittances; operating leverage in the model with many expenses fixed. The firm believes Circle could be a company in a paradigm shifting segment that supports a premium valuation akin to a Tesla (TSLA) or dominant AI company.