Bernstein Stands by Bullish View on Circle Stock Despite CLARITY Act Uncertainty

Wall Street research firm Bernstein has reaffirmed its bullish view on Circle stock. The analysts led by Gautam Chhugani maintained their Outperform rating and $140 price target, which implies a 59% upside from the current price of $87.

The growth cycle for Circle can continue even if the CLARITY Act fails in September, according to Bernstein. This is because stablecoin adoption, tokenized real-world assets, and blockchain-based capital markets are driving growth independently of regulatory changes.

Circle's revenue increased 7% year-over-year to $701 million in the second quarter, while net income reached $48 million. The company's USDC stablecoin saw a significant increase in supply, growing by $1.7 billion in the past week.

Bernstein also highlighted Circle's importance in decentralized-exchange trading and finance volumes, as well as its Agent Stack platform supporting hundreds of paid services.