Circle Shares Dive 17% as Price Target Slashed to $55 by Compass Point
CRCL•Circle’s shares plunged over 17% after renewed debate over a central bank digital currency, although pre-market trading showed a rebound. Compass Point shifted its rating from Sell to Neutral and cut its price target from $97 to $55 (11.3% downside), as a major new stablecoin launch intensifies competition.
1. Stock Volatility
Circle’s share price plunged 17% on Tuesday following renewed debate over a central bank digital currency, dipping to a low during regular trading before recovering into positive territory in Wednesday’s pre-market session.
2. Analyst Rating Adjustment
Compass Point raised Circle’s rating from Sell to Neutral while cutting its 12-month price target from $97 to $55, representing an 11.3% downside from the prior target and reflecting increased uncertainty around digital-dollar adoption.
3. Competitive Stablecoin Launch
A major new stablecoin launch this week is creating headwinds for USDC, raising questions about Circle’s market share and potential pressure on transaction volumes and revenue growth.
