Circle Internet Group EPS Beats; Price Target Raised to $100 After 50% Rally
Circle Internet Group posted Q4 EPS of $0.43 beating estimates by $0.08, with revenue of $770 million and USDC circulation up 72% to $75.3 billion. Mizuho raised its price target by 10% to $100, following a 50% stock rally after the results.
1. Strong Q4 Earnings
Circle delivered Q4 EPS of $0.43 versus a $0.35 consensus and generated $770 million in revenue, propelled by interest income on USDC reserves held in short-term Treasuries and cash.
2. USDC Growth and Reserves
USDC supply climbed 72% year-over-year to $75.3 billion, with reserves audited at $18.8 billion in U.S. Treasury securities as of January 30, supporting the coin’s dollar peg.
3. Analyst's Price Target Increase
Mizuho Securities raised its price target from $90 to $100, citing higher oil prices driving inflation risks and reducing the likelihood of Federal Reserve rate cuts.
4. Stock Performance
After debuting with a 124% IPO pop and 25x oversubscription, the stock surged nearly 50% post-earnings and traded near $96, before a slight pullback.