JPMorgan experts, one of the leading investment banks in the U.S., have begun analyzing Circle (CRCL) stocks with an ‘underweight’ rating and a price target of $80 for December 2026.
JPMorgan analysts, led by Kenneth Worthington, presented their first official estimate of Circle stocks in the report ‘North American Equity Market Research’ available to Cointelegraph on Monday.
Compared to the current price of CRCL at $180, the forecasted value is reduced by 55% and is based on a future earnings per share (EPS) multiplier of 45 times and a $10 premium for potential growth.
“Our price target reflects a significant premium to the IPO price of $31 but also a substantial discount to the current stock price of $180,” analysts note.
Although analysts at JPMorgan believe that Circle is in a favorable position in the emerging stablecoin market due to its early start and multiple use cases, they suggest that its current market capitalization is overstated. According to CompaniesMarketCap data, Circle's value is $43.8 billion, showing significant growth since the start of CRCL stock trading on the New York Stock Exchange (NYSE) with a valuation of $8 billion on June 5.
“Our target price for December 2026 of $80 implies a market capitalization of about $21 billion. We remind you that the average IPO price [$31] was valued at $8 billion,” analysts state.
Competition is named a potential threat to Circle. JPMorgan mentions several events that could threaten the company's market value in the coming months, including the impact of market competition.
Among other risks, JPMorgan cites the regulation of stablecoins in the U.S., which may require issuers like Circle to hold equity capital depending on the volume of circulating stablecoins, similar to the European regulation ‘Markets in Crypto-Assets’ (MiCA).
While JPMorgan believes that Circle has sufficient capital to support its USDC stablecoin, new requirements may limit its growth.
Additionally, analysts highlight the risks associated with the development of central bank digital currencies (CBDCs). While the U.S. has taken a favorable approach to stablecoins, supporting the strength of the dollar, other countries may create pressure on the global expansion of Circle.
“Further adoption of CBDCs worldwide, especially in Europe, may affect Circle's ability to scale globally, negatively impacting long-term growth and profitability,” analysts summarize.
Cryptocurrencies aimed to overthrow banks, now they are becoming them in the battle for stablecoins.
