Circle Gets Buy Rating From Seaport Securities, Which Sees $2T Stablecoin Opportunity Ahead

Circle (CRCL) shares continued their explosive rally on Friday, climbing 19% to close at $237, breezing past the $235 price target set by Seaport Securities. The company’s stock has now skyrocketed nearly eightfold from its IPO price of $31 just over two weeks ago.

Seaport Securities recently initiated coverage of Circle with a buy rating, citing significant growth potential in the stablecoin sector. Analysts at the firm estimate the stablecoin market could grow to as much as $2 trillion in the coming years, a sharp increase from the current level of around $260 billion.

Seaport projects Circle can achieve 25% to 30% annual revenue growth, with healthy gross margins of approximately 40%, placing it ahead of many other fintech firms.

“Circle is poised to outperform most fintech players over the next couple of years and merits a premium valuation multiple,” Seaport noted in its report.

Investors seem to share Seaport’s optimism, propelling Circle’s stock sharply higher as enthusiasm builds around the company’s future in the expanding digital asset landscape.