Bernstein has kept its Outperform rating and $140 price target for Circle after the company reported second-quarter earnings that topped profit expectations, even as revenue came in softer than analysts had forecast.
Profit beats despite softer revenue
Circle's Q2 revenue fell short of Wall Street estimates, but the bottom line still managed to beat profit projections. The mixed results didn't shake Bernstein's confidence. The firm reiterated its bullish stance, signaling that the earnings report didn't change its view on the company's long-term potential.
Investor concerns vs. growth strategy
Bernstein acknowledged that some investors remain worried about competitive pressures and the sustainability of reserve income. But the analysts argued that these concerns may not fully capture Circle's broader growth strategy. The company appears to be positioning itself beyond just stablecoin revenue, though Bernstein didn't elaborate on specific initiatives in its note.
The $140 price target implies significant upside from current levels, suggesting Bernstein sees room for Circle to expand its market position despite the headwinds.
Circle has not yet commented on the analyst note or the earnings results.
