JPMorgan Chase is forecasting a significant price drop for Circle (CRCL), the stablecoin company. Analyst Kenneth Worthington predicts the stock will fall by a double-digit percentage.
A Price Target of $80
Worthington set a price target of $80 for CRCL. That’s a whopping 56% lower than the current price. He’s worried about increased competition in the stablecoin market.
The Competition Factor
Worthington points to growing competition from companies launching their own stablecoins and digital payment systems. He highlighted the risk of new players grabbing market share, especially since switching between providers is easy. Major retailers like Amazon and Walmart are reportedly among those exploring stablecoin options.
Circle’s Recent Performance
Currently trading around $182, CRCL is up significantly from its IPO price of $31. However, it’s also down considerably from its all-time high of nearly $300. The company boasts a market cap exceeding $40 billion, but a high price-to-earnings ratio of 234.
A Different View
Interestingly, Barclays holds a more optimistic view, with analyst Ramsey El-Assal setting a price target of $215. They believe the growing adoption of dollar-pegged stablecoins within traditional finance will benefit Circle.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before making any investment decisions.
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