Circle Internet Group (CRCL) surged more than 35% on Wednesday, hitting $83 — its highest since January 15 and 66% above the year's low. The rally lifted its market cap to nearly $20 billion. Yet even as the market cheered the earnings beat, a major investment bank slashed its price target.
Canaccord Genuity Cuts Target by 35%, Stays Bullish
Analysts at Canaccord Genuity, which manages over $110 billion in assets, maintained a Buy rating but lowered the price target from $247 to $160. Despite the reduction, they praised Circle's strong quarter: USDC in circulation surged more than 100% to $75 billion, with Circle expecting a CAGR above 40%. The bank called Circle the “purest play stablecoin stock” due to its singular focus.
Circle Payment Network and Arc: Key Catalysts
Canaccord highlighted two growth drivers. First, Circle Payment Network (CPN) aims to replace SWIFT, enabling banks and fintech firms to settle cross-border payments with stablecoins. CPN costs are negligible, transactions settle in seconds, and annualized volume has passed $5.7 billion with 55 institutions onboard. Second, Circle is building Arc, its own Layer-1 blockchain, which has already attracted hundreds of developers. Canaccord expects CPN to eventually run on Arc, boosting future revenue.
Nicknamed 'Switzerland of Stablecoins': Compliance as Moat
Circle earned the moniker “Switzerland of Stablecoins” from Canaccord, as its sole business is stablecoins and USDC is the largest stablecoin compliant with the GENIUS Act. The report argued: “Could e-commerce or financial giants launch competing stablecoins? Maybe, but would Amazon really accept Walmart’s stablecoin?” Regulatory compliance is seen as a key barrier against big rivals.
Other Analyst Moves: Needham Cuts, William Blair Reiterates Outperform
Needham analyst John Todaro lowered his target from $190 to $130, while William Blair reiterated an Outperform rating. The Wall Street consensus target stands at $131, implying roughly 57% upside from current levels.