Compass Point has upgraded Circle Internet Group (CRCL) to a Buy rating from Neutral, setting a price target of $99.00. The stock is currently trading at $76.12, down 33% over the past six months, but the firm believes it remains undervalued. Analyst Ed Engel views Circle Internet as the best large-cap proxy for crypto exposure heading into year-end 2026 and the fourth quarter.
The firm expects Circle Internet's RLDC margins to exceed fourth-quarter guidance and return to growth in 2027. Compass Point also sees signs of a recovery in USDC, Circle's stablecoin, which could drive the stock higher. Circle Internet trades at 30 times EBITDA, excluding ARC, if USDC averages $85 billion.
In recent news, Circle Internet Group reported a significant earnings beat for the third quarter of 2026, with adjusted earnings per share reaching $0.84, surpassing analysts’ expectations of $0.23. Revenue was $865 million, up 17% from the previous year, largely driven by $182 million from an ARC token presale. However, Mizuho raised concerns about the sustainability of this growth, noting an 8% year-over-year decline in total revenue and reserve income, excluding the token sale.
H.C. Wainwright maintained a Buy rating on Circle Internet Group but lowered its price target from $104 to $100, citing strong revenue and earnings performance. Meanwhile, Mizuho increased its price target from $43 to $46 but maintained an Underperform rating due to ongoing margin concerns. Circle’s CPN annualized payment volumes reached over $58 billion as of October 30, up from $23 billion on July 31.