Clear Street Upgrades USDC issuer Circle To Buy
New York research firm Clear Street recently upgraded Circle (NYSE: $CRCL) from Hold to Buy, citing the impressive growth of the firm’s flagship stablecoin, USDC, despite the volatile nature of the broader cryptocurrency markets.
Analyst Owen Lau raised his price target for the digital dollar issuer to $136 from $92, indicating a potential 10% upside from Monday’s stock price. In a research note released early Monday, Lau emphasized that the adoption of stablecoins like USDC has become independent of the fluctuations seen in assets like Bitcoin.
Shares of Circle saw a significant uptick of over 7% to $124.04 in late morning trading following the report. The stock has made a remarkable recovery, surging more than 100% from its February lows near $50.
Clear Street also provided a fiscal 2028 adjusted EBITDA forecast of $1,132 million, using a 30-times multiple of that estimate along with the company’s $2.3 billion in net cash to determine the new $136 price target.
The upgrade coincided with reports that USDC (CRYPTO: $USDC) has surpassed Tether (CRYPTO: $USDT) in adjusted transaction volume for the first time since 2018, claiming a 64% share of on-chain activity.
While some technical indicators suggest that the stock may be entering overbought territory after its recent rally, Clear Street believes that the shift towards regulated stablecoins presents an attractive opportunity for long-term investors.
Overall, Clear Street’s upgrade of Circle to a Buy rating highlights the growing significance of USDC in the stablecoin market and the potential for continued success in the future.
