Compass Point Downgrades Circle Internet Group (CRCL) to Sell

Compass Point analyst Ed Engel downgraded Circle Internet Group (NYSE: CRCL) from Neutral to Sell with a price target of $130.00 (from $205.00).

The analyst comments "After U.S. stablecoin legislation passed last week, we are downgrading CRCL to Sell from Neutral and reducing our PT to $130 (-$75). We still believe USDC can be an integral part of the financial system; however, we're more cautious towards CRCL's long-term economics than its $53bn valuation implies. In the coming months, we expect Circle to expand its distribution network while sharing a greater percent of interest income. We also expect traditional banks and Fintechs to announce competing stablecoin products. These 2H25 catalysts could force investors to re-calibrate long-term EBITDA margin and market share expectations while putting pressure on CRCL's premium valuation."

For an analyst ratings summary and ratings history on Circle Internet Group click here. For more ratings news on Circle Internet Group click here.

Shares of Circle Internet Group closed at $223.78 yesterday.

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