Analysts Raise Circle's Target Price, Rising Oil Prices and Interest Rate Expectations Favor Stablecoin Business

Odaily According to reports, influenced by rising oil prices and changes in interest rate expectations, several institutions have raised the target price for stablecoin issuer Circle Internet Group. On Tuesday, Circle's stock price rose nearly 8% to $103.71, hitting a nearly four-month high.

Mizuho analysts Dan Dolev and Alexander Jenkins raised Circle's target price from $90 to $100 while maintaining a "Neutral" rating. The analysts noted that the recent rise in crude oil prices—up about 6% over the past five days and approximately 24% year-to-date—could lower market expectations for interest rate cuts in 2026.

The report suggests that changes in interest rate expectations may have a greater impact on Circle's valuation multiples rather than its short-term revenue. Although the analysts only made a slight upward revision to the company's revenue forecast, the interest income generated from stablecoin reserve assets in a higher interest rate environment will continue to support its business.

However, the analysts also warned that as the regulatory framework for stablecoins becomes clearer, market competition may intensify, potentially putting long-term pressure on industry profit margins.