New York research firm Clear Street upgraded Circle (NYSE: $CRCL) from Hold to Buy on Monday, citing the firm’s flagship stablecoin, USDC, has shown significant growth despite a volatile run for broader cryptocurrency markets.
Analyst Owen Lau raised his price target for the digital dollar issuer to $136 from $92, suggesting a roughly 10% upside from Monday’s stock price.
In a research note released early Monday, Lau highlighted that the current adoption of stablecoins has decoupled from volatile assets like Bitcoin.
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Shares of Circle surged over 7% to $124.04 in late morning trade following the report. The stock has staged a remarkable recovery, rebounding more than 100% from its February lows near $50.
The firm also suggested a fiscal 2028 adjusted EBITDA forecast of $1,132 million, basing its new $136 price target on a 30-times multiple of that estimate plus the company’s $2.3 billion in net cash.
The upgrade coincides with reports that USDC (CRYPTO: $USDC) has overtaken Tether (CRYPTO: $USDT) in adjusted transaction volume for the first time since 2018, capturing a 64% share of on-chain activity.
While some technical indicators suggest the stock may be entering overbought territory following its recent rally, Clear Street maintains that the structural shift toward regulated stablecoins provides a compelling entry point for long-term investors.
