Odaily Planet Daily report: Due to rising oil prices and changes in interest rate expectations, multiple institutions have raised their target price for stablecoin issuer Circle Internet Group. On Tuesday, Circle's stock price rose nearly 8% to $103.71, reaching its highest level in nearly four months.
Mizuho analysts Dan Dolev and Alexander Jenkins raised Circle’s price target from $90 to $100 and maintained a “Neutral” rating. The analysts noted that the recent rise in oil prices—up approximately 6% over the past five days and about 24% year-to-date—may lower market expectations for rate cuts in 2026.
The report suggests that changes in interest rate expectations may have a greater impact on Circle’s valuation multiples than short-term revenue. Although analysts only slightly raised their revenue forecasts for the company, interest income generated from stablecoin reserve assets will continue to support its business in a higher interest rate environment.
However, analysts also warned that as the regulatory framework for stablecoins becomes clearer, market competition may intensify, potentially putting downward pressure on industry profit margins in the long term.