Freedom Capital Markets initiated coverage on Circle Internet Group (CRCL) with a Hold rating. The firm established a $120 price target for the stablecoin issuer.
Analysts cited concerns regarding high valuation and uncertainties surrounding interest rates. The report also highlighted regulatory risks from the CLARITY Act and rising competition in the stablecoin sector.
Circle shares fell more than 4% following the initiation. This decline follows a recent downgrade from Compass Point due to deteriorating profit margins.
The company currently faces a class-action lawsuit alleging a failure to act during a $280 million exploit.