JPMorgan has initiated coverage of Circle (CRCL) shares with an underweight rating and a $80 price target by December 2026. The analysts see the company as well-positioned in the stablecoin market due to its early-mover advantage and numerous use cases.
However, JPMorgan’s analysts have downgraded their view on CRCL due to concerns over competition, regulatory risks, and potential impact from central bank digital currencies (CBDCs). They note that the current market capitalization of $43.8 billion is elevated and may not be sustainable in the long term.
The analysts estimate that Circle’s market cap will decline to approximately $21 billion by December 2026, based on their price target of $80. This implies a substantial discount to the company’s IPO price of $31 and current share price of $180.
Competition from stablecoin competitors, as well as other crypto investment products like tokenized deposit accounts and digital money market funds, is seen as a potential threat to Circle’s market value. Additionally, JPMorgan highlights risks related to US stablecoin regulations and CBDCs, which could impact the company’s ability to scale globally.
Despite these concerns, JPMorgan acknowledges Circle’s strengths in the stablecoin market and its ability to adapt to regulatory changes. The analysts’ underweight rating reflects their cautious outlook on the company’s long-term growth and profitability.
Source: https://cointelegraph.com/news/jpmorgan-circle-underweight-80-target-late-2026