Freedom Capital initiated coverage of Circle Internet with a Hold rating and $120 price target. Circle is a key player in the broader digital assets ecosystem as the leading global issuer of compliant stablecoins, primarily USDC, which has about $79B in circulating supply, or about 25% of total stablecoin market, making it the second largest stablecoin, the analyst tells investors. The firm sees strong potential for stablecoin adoption, specifically, USDC, but is cautious on Circle shares given uncertainty around several potential outcomes, including the trajectory of interest rates, commercial adoption of stablecoins, regulatory changes, and rising competitive dynamics, the analyst added.
