Top Analyst Assigns Circle Internet Stock (CRCL) a Sell Rating. Here’s Why

Top Wolfe Research analyst Darrin Peller initiated coverage of Circle Internet Group stock (CRCL) with a Sell rating and a price target of $60. While Peller noted several positives, he is bearish on CRCL stock due to headwinds related to interest rates and growing competition. CRCL stock has declined 40% over the past month amid weakness in the crypto market and margin pressures. Circle Internet issues and manages the USDC stablecoin, which is pegged to the U.S. dollar.

Wolfe Analyst Weighs in on CRCL Stock

Peller noted that Circle is the second-largest stablecoin issuer in the world, behind Tether. The 5-star analyst added that the company’s focus on establishing a platform that complies with evolving regulations and addresses the needs of traditional financial institutions has resulted in notable share gains in recent years.

The analyst highlighted that CRCL issues USDC and EURC, delivering estimated 2025 revenues of over $2.75 billion, with over 96% from interest income. Circle Internet’s reliance on interest rates presents a near-term risk as the Federal Reserve is expected to cut rates.

While Peller highlighted several positives and called Circle the “undisputed leader” in the globally regulated stablecoin market, he is bearish on the stock due to interest rate headwinds and growing competition. The top-rated analyst also noted CRCL stock’s premium valuation. Additionally, Peller pointed out the impact of increasing distribution incentives paid to partners on the company’s margins.

Is CRCL Stock a Buy, Sell, or Hold?

Currently, Wall Street has a Moderate Buy consensus rating on Circle Internet stock based on 10 Buys, five Holds, and three Sell recommendations. The average CRCL stock price target of $145.87 indicates 87% upside potential.

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