Analysts at JPMorgan, a major U.S. investment bank, have launched undercover Circle (CRCL) stock and have secured a $80 target by December 2026.
Analysts at JPMorgan, led by Kenneth Worthington, presented their first formal circle analysis in a report on “North American Stock Research” seen by Cointelegraph on Monday.
The forecast is 55% lower than the current CRCL price, based on a 45xx earnings per share (EPS) projected in 2027, and a premium premium of $10.
“Our price target reflects a significant premium of $31 in the IPO price, but at the same time enjoys a discount of $180 in the current share price,” analysts wrote.
The market value is expected to be US$21 billion by the end of 2026
While seeing circles and placed at good distances in the freshman Stablecoin market, JPMorgan analysts suggest its current market cap has increased given its early advantages and many use cases.
according to For data from CompanyMarketCap, Circle is worth $43.8 billion, CRCL stocks begin trading on the New York Stock Exchange (New York Stock Exchange) The market value on June 5 was US$8 billion.
“Our December 2026 target price target is $80, which means a market cap of about $21 billion. We have noticed that the midpoint of the IPO (the initial public offering) is $31 or $8 billion in market cap,” analysts said.
Competition is a potential threat to the circle
To justify its circle’s underweight rating, JPMorgan analysts mentioned some developments that could potentially damage the company’s market value in the coming months, including the impact of market competition.
“We see competition as a potential threat to the circle,” analysts said, referring not only to direct competitors who stabilize their competitors, but also to other crypto investment products such as tokenized deposit accounts and digital currency market funds.
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“The risk is that some people will successfully gain enough share to achieve the critical quality of businesses with lower conversion costs, allowing them to leverage the networks built by the circle,” analysts said.
CBDC at risk
Among other risks, Morgan Crypto Asset Market (MICA) regulations.
Although JPMorgan estimates Circle has enough equality to support its USDC (USDC) Stablecoin held in the U.S., analysts suggested that higher capital requirements could limit USDC growth.
In addition, analysts highlighted some risks due to development Central Bank Digital Currency (CBDCS). Although the United States has A stable approach was taken JPMorgan’s report noted that in order to support the strength of the dollar, other countries may add some pressure to Circle’s global expansion.
“The adoption of global CBDCs, especially in Europe, could impact Circle’s ability to expand globally, thereby adversely affecting long-term growth and profitability,” analysts wrote.
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