Citigroup says Circle's valuation is fair and gives it a buy rating for the first time

PANews July 1 news, according to CoinDesk, Wall Street bank Citigroup said in a research report on Monday that Circle (CRCL) has the opportunity to become a major driver of stablecoin adoption and reported on the stock. The report pointed out that although Circle's stock price has risen sharply since its listing, its valuation is still reasonable. Its IPO issue price was $31 per share, and it fell back to $181 after hitting a new high of $299 last week. Citi analysts gave the stock a "buy/high risk" rating for the first time, with a target price of $243, which is about 34% higher than last night's closing price. The report said that Circle benefits from scarce value, the "winner takes all" concept, huge opportunities, legislative momentum and operating leverage potential. Analysts believe that neutrality is its key competitive advantage, and it is crucial to resist the risk of stablecoin splits and become a leader. In addition, high operating leverage and low capital intensity may help it achieve high excess returns.