Seaport Research has started its coverage of Circle (CRCL, Financial) with a Buy rating and a target price of $235. The firm highlights Circle as a leading figure in the crypto industry with significant growth potential. A major factor in this outlook is the anticipated rise in the global use of stablecoins, particularly Circle's main offering, USDC. This growth is expected to benefit from an improving regulatory environment.
According to the firm, the market capitalization of stablecoins, which is around $260 billion currently, could expand to as much as $2 trillion in the future. Circle is predicted to achieve annual revenue growth rates between 25% and 30% during this expansion phase. As the company scales, it may increase its operational efficiency, justifying a higher valuation for its shares.
