Bernstein Backs Circle at $140 Price Target Amid Renewed USDC Growth

Circle Internet Group's stock has seen a boost after analysts at Bernstein maintained their Outperform rating and $140 price target on the company. The analysts argue that growth does not depend on the outcome of the CLARITY Act, which aims to establish a broader U.S. regulatory framework for digital asset markets.

The stablecoin USDC's supply has increased by about $1.7 billion over the past week after spending nearly six months moving largely sideways. This renewed growth in USDC supply is one factor supporting Bernstein's outlook on Circle stock. The analysts point to potential sources of further USDC adoption, including stablecoin payments, tokenization, and blockchain-based capital markets.

Circle reported second-quarter revenue of $701 million, up 7% from a year earlier but slightly below analyst forecasts. Net income reached $48 million, while earnings per share came in at $0.18 and exceeded market expectations. Bernstein expects regulatory agencies to move faster on crypto rules if lawmakers fail to advance the legislation during the scheduled September 15 vote.