Bernstein Sets $140 Circle Stock Price Target, Says Growth Does Not Depend on CLARITY Act
Highlights
- Bernstein maintains an Outperform rating on Circle stock and a $140 price target.
- USDC supply increased by $1.7 billion last week after nearly six months of sideways movement.
- Bernstein says Circle’s growth does not depend on the CLARITY Act passing the U.S. Senate.
Bernstein maintained its Outperform rating and $140 price target on Circle, arguing that USDC adoption and expanding blockchain-based financial activity can support growth regardless of the CLARITY Act outcome.
Bernstein Backs Circle as USDC Supply Returns to Growth
Bernstein analysts led by Gautam Chhugani maintained their bullish view on Circle Internet Group after the stablecoin issuer’s second-quarter results. The $140 target represents about 59% upside from Circle stock price recent closing price of $87.98
Circle stock shares were trading at $89.20 at the time of writing, up 1.39%, giving the company a market capitalization of about $22.64 billion. The stock recently gained more than 5% in a single session after facing pressure during a broader market decline, while the tokenized asset gained 0.66% over the past 24 hours
Bernstein pointed to renewed growth in USDC supply as one factor supporting its outlook. USDC circulation increased by about $1.7 billion over the past week after spending nearly six months moving largely sideways.
The stablecoin continues to serve as collateral and a settlement asset across decentralized finance, tokenized assets and prediction markets.
Circle stock reported second-quarter revenue of $701 million, up 7% from a year earlier but slightly below analyst forecasts. Net income reached $48 million, while earnings per share came in at $0.18 and exceeded market expectations.
Circle stock Growth Thesis Does Not Rely on CLARITY Act
Bernstein said its Circle investment thesis does not depend on Congress passing the CLARITY Act during the Senate’s September session. The legislation seeks to establish a broader U.S. regulatory framework for digital asset markets and clarify oversight between federal regulators.
“We believe this growth cycle is independent of the Clarity Act passing in the September session,” the analysts wrote. Bernstein expects regulatory agencies to move faster on crypto rules if lawmakers fail to advance the legislation during the scheduled September 15 vote.
The analysts identified stablecoin payments, tokenization and blockchain-based capital markets as potential sources of further USDC adoption. They also pointed to emerging agent-based payments, where software systems can use stablecoins to settle transactions automatically.
For users seeking exposure to real-world events, the best crypto prediction markets offer stablecoin-based trading on political and economic outcomes.
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