Baird lowers Circle Internet stock price target to $100 on revenue outlook

Baird lowers Circle Internet stock price target to $100 on revenue outlook

Gold slides as U.S.-Iran conflict lifts oil, hawkish Fed bets grow Investing.com - Baird cut its price target on Circle Internet Group (NYSE:CRCL) to $100 from $138 while maintaining an Outperform rating on the stock. The stock currently trades at $66.14, down 65% over the past year, though InvestingPro analysis suggests the shares are undervalued at current levels. The firm expects second-quarter revenue to come in slightly below Wall Street estimates, though EBITDA is projected to meet consensus.

The analyst attributed the expected EBITDA performance to a mix shift toward on-Circle USDC and improved operating expenses. Baird left its 2027 earnings per share estimates unchanged, citing lower USDC levels offset by higher reserve rates. The firm acknowledged near-term sentiment risks related to lower USDC outstanding and the OpenUSD consortium.

The analyst said the firm continues to view the stock favorably due to Circle’s first-mover advantage as a GENIUS-compliant stablecoin issuer. Baird also pointed to increasing stablecoin use cases as a positive factor. An InvestingPro tip notes that analysts predict the company will be profitable this year, with EPS forecast at $1.13 for fiscal 2026.

The platform offers 6 additional exclusive tips for CRCL subscribers. The firm highlighted Circle’s future opportunity to monetize infrastructure products as an additional reason for its positive stance on the shares. In other recent news, Circle Internet Group has received final approval from the Office of the Comptroller of the Currency to establish a national trust bank, named Circle National Trust.

This approval allows the company to operate under direct federal oversight, focusing on digital asset custody, reserve management, and fiduciary services. Following this regulatory milestone, Mizuho reiterated its Neutral rating on Circle Internet with an $85.00 price target, while Wolfe Research maintained an Underperform rating with a $65.00 price target. The regulatory approval has been a significant development for the company, as it enables the establishment of First National Digital Currency Bank, N.A.

This move is expected to enhance the company’s capabilities in managing digital assets and providing related services. Additionally, options trading in Circle Internet surged, with a total of 195,548 contracts traded, indicating heightened investor interest. Call volume reached 151,751 contracts, while put volume stood at 43,797 contracts.

These developments reflect a period of increased activity and interest in Circle Internet Group following its regulatory achievements.