What to know:
- Red-hot Circle Internet Group (CRCL) received its initial sell-side coverage Friday, with Seaport Securities starting the stock with a buy rating and $235 price target.
- The stablecoin market cap could hit $2 trillion over the long term versus about $260 billion today, said Seaport.
- Shares are higher by nearly another 20% on Friday to $237.
Recently gone public stablecoin issuer Circle (CRCL) was started with a buy rating and $235 price target at Seaport Securities.
The stablecoin market cap could reach $2 trillion in coming years versus just about $260 billion today, said the Wall Street research firm. Alongside, Seaport sees Circle as able to generate annual revenue growth of 25%-30% with gross margins of roughly 40%.
Circle, said the firm, should perform far better than most fintechs over the next two years and thus deserves a premium multiple.
Shares of CRCL are higher by another 19% on Friday to $237, already topping that $235 price target. The stock has now risen nearly eight-fold since coming public at $31 a bit more than two weeks ago.
