Circle stock downgraded to ‘sell’ even after Trump signed GENIUS Act into law
Main Idea
Compass Point analyst downgrades Circle Internet Group (CRCL) to 'sell' due to concerns over the GENIUS Act's impact and the stock's overvaluation, despite its recent IPO success.
Key Points
1. Compass Point analyst Ed Engle downgraded CRCL to 'sell' with a price target of $130, suggesting a potential 35% decline.
2. The GENIUS Act is seen as a near-term headwind for CRCL, increasing competitive pressures in H2 2025.
3. CRCL shares are trading at over 6x their IPO price, with a P/S multiple of 25, indicating overvaluation.
4. Analysts caution that the GENIUS Act may lead investors to reassess CRCL's long-term EBITDA margins and market share.
5. Despite the downgrade, the mean target price of $187 suggests a 7% downside from current levels.
Description
Stablecoins have been all the rage in the financial markets ever since President Trump signed the “ GENIUS Act ” into law – and yet Circle Internet Group Inc (NYSE: CRCL) has lost nearly 20% since July 18 th . Experts believe the aforementioned crypto legislation is largely positive for the crypto market as it essentially invites stablecoins into the mainstream finance. However, Ed Engle – a senior Compass Point analyst has a contrarian view on Circle stock. In his latest research note, the mark...
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