JPMorgan Chase issues its first rating on Circle's stock: assigns a "Reduce" rating and sets a target price of $80 by the end of 2026.

Gate News bot message, According to reports, on June 30, the JPMorgan analyst team rated Circle (CRCL) stock for the first time, giving it a "Reduce" rating and setting a target price of $80 for December 2026. This target price is 55% lower than Circle's current stock price of $180.

Analysts believe that although Circle holds a favorable position in the emerging stablecoin market, its current market capitalization is overvalued. They point out that the target price of $80 corresponds to a market cap of about $21 billion, while the median pricing in the company's IPO was $31, corresponding to a market cap of $8 billion.

J.P. Morgan mentioned several factors that could affect Circle's market value, including market competition, U.S. stablecoin regulatory policies, and risks arising from the development of central bank digital currencies (CBDCs). Analysts believe that competition is a potential threat to Circle, including direct stablecoin competitors and other crypto investment products.

In addition, U.S. stablecoin regulatory policies may require issuers to hold corresponding equity capital, which could limit the growth of USDC. At the same time, the development of CBDCs in other countries may also put pressure on Circle's global expansion.