Circle Launches New Blockchain For Stablecoins: Goldman Sachs, JPMorgan Analysts Adjust Price Targets

Circle Internet Group Inc CRCL unveiled a new blockchain, Arc, designed for stablecoin finance. The firm also introduced instant cross-chain liquidity via Circle Gateway, as it reported second-quarter results. Shares of the company tanked in early trading Tuesday despite the product announcements.

Here are some key analyst takeaways.

• Goldman Sachs analyst James Yaro reaffirmed a Neutral rating, while reducing the price target from $88 to $86.
• JPMorgan analyst Kenneth Worthington maintained an Underweight rating, while raising the price target from $80 to $89.

Check out other analyst stock ratings.

Goldman Sachs: Circle reported its quarterly net revenue and adjusted operating income 4% and 6% higher than the consensus estimates. The company continues to invest heavily in its business, Yaro said in a note citing Arc and Circle Gateway.

"The company also announced new or expanded partnerships with a number of crypto-native and traditional finance partners," the analyst wrote. Management reiterated the guidance for a multi-year CAGR (compounded annual growth rate) of 40% for USDC circulation, he further stated.

JPMorgan: Circle reported net revenue of $251 million and adjusted EBITDA of $126 million, Worthington said. Overall, the company delivered a strong quarter, he added.

The company generated "strong growth in higher margin areas of the business," like USDC on the Circle platform, the analyst wrote. The "biggest news" from the earnings call was the company's announcement of Arc, a new blockchain that is built for stablecoin finance and expected to be launched in the back half of 2025, he further stated.

CRCL Price Action: Shares of Circle Internet Group had declined by 3.62% to $136.45 at the time of publication on Tuesday.

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