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Bernstein maintains $190 Circle price target as $222 million ARC presale cushions rate pressure

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Bernstein maintains $190 Circle price target as $222 million ARC presale cushions rate pressure.

Analysts at research and brokerage firm Bernstein maintained their Outperform rating on Circle Internet Group (CRCL) with a $190 price target, pointing to a $222 million ARC token presale and resilient USDC supply as offsets to declining interest income.

Key facts

Summary

Circle shares closed at $131.76 on Monday, 's CRCL price page, with Bernstein’s price target implying about 44% upside from that level. In a note to clients on Tuesday, the analysts led by Gautam Chhugani described the ARC transaction at a $3 billion fully diluted network value as providing a near-term buffer as Circle’s reserve income declined 11% quarter-on-quarter due to weaker interest rates, while adjusted EBITDA of $151 million came in about 10% above consensus estimates. The analysts said Q1 revenue of $694 million missed estimates by roughly 4%, driven primarily by lower reserve income, but noted that adjusted EBITDA strength and stable cost discipline supported near-term financial visibility.

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