TD Cowen Lifts Circle Price Target to $92 Amid Regulatory Uncertainty
TD Cowen analyst Bryan Bergin has raised his price target for Circle Internet Group (CRCL) to $92, citing improving reserve economics and the company's expansion into blockchain infrastructure. The analyst views the recent selloff in CRCL shares as a buying opportunity rather than a reason to retreat.
The Senate's failure to advance the CLARITY Act has removed what many saw as a preferred legislative path for clear rules of the road, but Bergin believes this development does not undermine his investment thesis. Instead, he points to three key factors: the launch of Circle's Arc public mainnet, the Federal Reserve's interest rate increase, and the regulatory landscape following the CLARITY Act defeat.
The Arc mainnet has been a strategic opportunity for Circle to diversify beyond reserve income and build additional revenue streams from financial infrastructure. Bergin noted that higher interest rates will directly translate into increased reserve-related revenue for the company.