In a report released today, Ed Engel from Compass Point maintained a Sell rating on Circle Internet Group, Inc. Class A, with a price target of $92.00.
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Ed Engel has given his Sell rating due to a combination of factors impacting Circle Internet Group, Inc. Class A. Despite an anticipated third-quarter performance that surpasses market expectations, Engel foresees potential downward revisions in future earnings forecasts, particularly for 2026. This is attributed to the likelihood of interest rate cuts by the Federal Reserve in the latter half of 2025, which could necessitate a significant increase in USDC supply to counteract the effects of these cuts.
Furthermore, Engel has adjusted his price target downward, reflecting these anticipated economic changes and the high valuation multiples at which CRCL currently trades. The stock’s vulnerability is heightened by the unlocking of pre-IPO shares, which could exert additional selling pressure. While CRCL’s gross margins are expected to be robust, driven by growth in higher-margin segments, these positive aspects are overshadowed by the broader economic risks and valuation concerns, leading to the Sell recommendation.