Circle Internet Group Surpasses Expectations in Major Crypto IPO Debut
Wall Street analysts gave Circle Internet Group, a stablecoin issuer, broadly positive ratings after its IPO, despite some concerns about its valuation. Circle's stock surged post-IPO debut. The company's strategic advantage lies in its strong digital dollar stablecoin network and recent legislative backing for stablecoins in the U.S.
Circle Internet Group, a stablecoin issuer, saw its shares decline nearly 3% during premarket trading after a significant IPO debut this month. The company's stock opened at $69—more than doubling its anticipated price, marked at $31 per share.
The listing, a major event since Coinbase's debut, was underwritten by major players like J.P. Morgan, Citigroup, and Goldman Sachs. Following the mandated quiet period, several other firms initiated coverage, largely recommending 'buy' ratings with target prices surpassing $200. Analysts at Bernstein lauded Circle for its exceptional digital dollar stablecoin network, regulatory advantage, and strategic partnerships.
However, valuation concerns were raised by J.P. Morgan and Goldman Sachs, noting the substantial rise in stock value since the IPO. J.P. Morgan started with an 'underweight' rating, pointing out a potential 56% downside. Despite concerns, Circle's shares have gained 161%, signaling investor optimism in the crypto market.
(With inputs from agencies.)
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