Mizuho raises Circle price target to $100

JH Kim

Summary

Mizuho Securities said it raised its price target for stablecoin issuer Circle to $100 from $90.
Mizuho said that a surge in oil prices and renewed inflation concerns driven by heightened Middle East tensions have lowered expectations for rate cuts, and it expects Circle’s interest income to rise as a result.
Circle manages a significant portion of its USDC reserves in short-term U.S. Treasuries and other interest rate-linked assets, meaning the interest-rate level has a direct impact on its earnings.

Forecast Trend Report by Period

Global brokerage Mizuho Securities has raised its price target for stablecoin issuer Circle. It maintained its rating at Neutral.

According to crypto-focused media outlet CoinDesk on the 3rd (local time), Mizuho lifted Circle’s price target to $100 from $90. However, it kept its investment view at Neutral.

Mizuho pointed to a roughly 20% rise in Circle’s share price this week, attributing it to a surge in oil prices driven by heightened tensions in the Middle East. It said that as rising oil prices have revived inflation concerns, expectations for rate cuts by the U.S. Federal Reserve have diminished, which it expects will increase interest income generated from Circle’s reserves.

Circle manages a significant portion of its US dollar stablecoin USDC reserves in interest rate-linked assets such as short-term U.S. Treasuries, meaning the level of interest rates has a direct impact on its earnings.