Circle initiated with an Underweight at JPMorgan

JPMorgan initiated coverage of Circle (CRCL) with an Underweight rating and $80 price target While the firm views Circle as well positioned in the nascent stablecoin market with an early-mover advantage in “what has been a winner-takes-most market,” and thinks “highly” of the Circle management team and is confident in the outlook for outsized stablecoin and USDC growth, the firm cites Circle’s “elevated” current market capitalization for its Underweight rating. With the firm witnessing the launch of tokenized deposit accounts, digital money market funds, and a host of new entrants looking to enter into the digital dollar market, it sees competition as a potential threat to Circle, the analyst noted.