Global brokerage firm Bernstein has initiated coverage on Circle (CRCL) with an “outperform” rating and a price target of $230, positioning the stablecoin issuer as a key player in the future of internet-native finance.
Circle, which went public on June 5 under the ticker CRCL, had one of the most anticipated IPOs in recent years. The listing was 25 times oversubscribed, priced above its initial range at $31, and jumped 167% on debut.
CRCL peaked above $292 on June 23, before pulling back. As of Friday, the stock closed at $180.43, down 15.5%.
In a note to clients, Bernstein analyst Gautam Chhugani said, “Circle is building a market-leading digital dollar stablecoin network, with a strong regulatory edge, liquidity headstart, and marquee distribution partnerships.”
He added that Circle is a “must-hold” for investors who want exposure to the next phase of internet-scale finance.
Bernstein expects the stablecoin market to grow from around $244 billion today to $4 trillion over the next decade, fueled by rising adoption in crypto markets, tokenized assets, cross-border payments, and stablecoin-powered financial services.
Circle’s flagship stablecoin, USDC, is already positioned as the most regulated dollar-backed stablecoin in the U.S. The recently passed GENIUS Act strengthens that position, giving Circle a potential edge as new platforms outside the crypto world start to adopt stablecoins.
Its $61.4 billion liquidity base makes it tough to replicate, giving it a massive head start over newer players who continue to face the cold-start challenge.
While Tether (USDT) still leads the market with a 65% share and $158.5 billion in supply, Bernstein expects Circle to gradually expand its share from 25% to 30% as regulation tightens in the U.S. Tether may be forced to launch a U.S. arm to stay compliant.
CRCL is currently trading at 56x 2026 and 28x 2027 adjusted EBITDA. Bernstein’s valuation model, based on a 10-year DCF, suggests 35x EBITDA by 2027, with revenue compounding at 47% annually and EBITDA growing 71% from 2024 to 2027. The firm sees short-term pullbacks as buying opportunities for long-term investors.
Just last week, Bernstein also raised its price target on Coinbase to $510, further highlighting its bullish stance on regulated stablecoin infrastructure.
Also Read: Circle Stock 750% Surge Sparks Debate on Stablecoin
