Bernstein reiterates $140 price target on Circle after earnings

Bernstein has maintained its Outperform rating and $140 price target on Circle after the company’s second-quarter results.

According to a Thursday client note, the firm argued that the market is overlooking Circle’s long-term growth prospects and underestimating the stablecoin issuer’s long-term growth prospects.

While reserve income continues to account for most revenue, analysts at Bernstein argued concerns about competition and declining interest-rate-driven earnings overlook Circle’s distribution network, regulatory advantages, and future revenue from the Arc blockchain, partnerships, and transaction services.

Bernstein also pointed to Circle’s higher 2026 guidance, national trust bank approval, and Arc mainnet launch as catalysts that could expand revenue beyond its current business model.

Circle shares slipped ahead of Thursday’s market open after ending the previous session at about $63. The stock has fallen approximately 20% so far this year.