Circle Stock Drops 5% After Drawing Sell Rating From Bank That Led IPO

JPMorgan initiated Circle with Underweight rating and target price $80. The shares plunged 15.5% on Friday.

The company, which went public earlier this month, is the sole issuer of USDC, one of the most popular stablecoins on the market. After an incredible post-IPO run, the company's stock retreated as investors grew wary of its valuation.

Several analysts predict that Circle could see a reversal in the long term due to potential interest rate reductions and rising competition.

Goldman Sachs initiated coverage of stablecoin issuer Circle Internet Group (CRCL) with a Neutral rating and an $83 12-month price target, based on 60.0x Q5-Q8 adjusted earnings, implying 54% downside. CRCL is a unique asset in the public markets, as the only pure play crypto-native company that has potential upside from expansion into very large existing fiat markets, without the direct price volatility inherent to crypto trading. CRCL’s main product, USDC, is a stablecoin meant to represent USD on blockchain.