Bernstein Stands by $140 CRCL Price Target Despite Regulatory Uncertainty

Bernstein analysts are sticking to their Outperform rating and $140 price target on Circle Internet Group (CRCL), despite concerns about regulatory clarity. The brokerage argues that Circle's growth trajectory is independent of the CLARITY Act, which will be voted on in the Senate on September 15.

The analysts note that stablecoin adoption has regained momentum, with USDC supply expanding by approximately $1.7 billion in the past week. They also highlight the company's recent financial results, including a 7% increase in revenue to $701 million and net income of $48 million.

Circle's partnerships pipeline continues to expand internationally, including agreements with Japan's JCB and Kakao in South Korea. The analysts believe that if the CLARITY Act fails to pass, the Securities and Exchange Commission and Commodity Futures Trading Commission would likely step in with regulatory guidance rather than creating operational obstacles for Circle.