Circle’s biggest bear just threw in the towel, but warns the stock is still a crypto roller coaster
Compass Point upgraded Circle's stock from Sell to Neutral, though the analyst maintains the lowest price target due to crypto correlation.Summary
Compass Point analyst Ed Engel, previously Circle's biggest bear, upgraded the stock from Sell to Neutral, acknowledging that market concerns are priced in and noting potential benefits from the CLARITY Act or increased DeFi tokenization.
However, Engel maintained the lowest price target of $60, arguing that Circle now trades like a cyclical stock because over 75% of USDC is used in high-risk crypto trading, causing it to move in lockstep with Ether. This heavy correlation to volatile crypto markets justifies a premium valuation concern.
Additional risks cited include competition from emerging stablecoins and traditional finance players like JPMorgan, alongside potential increases in 2026 operating expenses, suggesting a true decoupling from crypto cycles remains distant.
(Source：CoinDesk)