TechFlow, July 1 - According to CoinDesk, Wall Street bank Citigroup has assigned stablecoin issuer Circle (CRCL) a "Buy/High Risk" rating with a target price of $243.
Despite Circle's significant share price increase since its initial public offering (IPO)—rising from $31 to a record high of $299 last week—Citigroup analysts believe the company is not overvalued. Analysts stated that Circle benefits from "scarcity value, a winner-takes-all market structure, a large total addressable market, legislative momentum, and substantial operating leverage potential."
Citigroup highlighted that Circle's key competitive advantage lies in its neutrality, and "being the preferred choice" will be crucial for the company to counteract the risk of fragmentation in the stablecoin market. In contrast, JPMorgan downgraded Circle to "Underweight" yesterday, citing valuation concerns.
