EddieJayonCrypto
3 Jul 25
JPMorgan analyst Kenneth Worthington predicts a 56% drop in Circle (CRCL) stock from its current price of $182 to $80, citing increasing competition from companies like Amazon and Walmart entering the stablecoin market. Circle's stock has risen nearly sixfold recently but faces threats from new digi...
JPMorgan analyst Kenneth Worthington predicts a significant drop in the stock of Circle (CRCL), a stablecoin issuer listed on the New York Stock Exchange, following its nearly sixfold increase in less than a month. Worthington has set a price target of $80 for Circle, which represents a decline of about 56% from the current trading price. The analyst highlights competition as the primary threat to Circle, as numerous companies, including major retailers like Amazon and Walmart, plan to issue their own stablecoins.
Worthington explains that the market is witnessing the rise of tokenized deposit accounts, digital money market funds, and various new entrants targeting the digital dollar market. He cautions that low switching costs could allow competitors to capture significant market share, leveraging the network built by Circle. Despite this, Circle’s stock remains at $182 at the time of writing, up approximately 487% from its IPO price of $31, though down roughly 39% from its peak of around $299 on June 23rd.
Circle currently boasts a market capitalization exceeding $40 billion and a price-to-earnings ratio of 234. Contrasting JPMorgan’s caution, Barclays analyst Ramsey El-Assal maintains a bullish view on Circle, setting a price target of $215. El-Assal bases his optimism on the expectation that US dollar-pegged stablecoins will continue to grow alongside increasing adoption by traditional financial institutions.