According to PANews, Citigroup stated in a research report that Circle (CRCL) has the opportunity to become a major driver of stablecoin adoption. Despite a significant rise in Circle's stock price since its listing, the valuation remains reasonable.
Circle's IPO issue price was $31 per share, which fell back to $181 after reaching a new high of $299 last week. Citigroup analysts have given the stock a 'Buy/High Risk' rating for the first time, with a target price of $243, representing an upside potential of about 34% from last night's closing price.
The report states that Circle benefits from scarcity value, the 'winner takes all' concept, huge opportunities, legislative momentum, and potential operational leverage. Analysts believe that neutrality is its key competitive advantage, which is crucial to withstand the risks of stablecoin fragmentation.
