Analyst raises Circle's target price, oil price increase and interest rate expectations benefit stablecoin business

Odaily Planet Daily reports that due to rising oil prices and changing interest rate expectations, several institutions have raised their target prices for stablecoin issuer Circle Internet Group. On Tuesday, Circle's stock price rose nearly 8% to $103.71, reaching a four-month high.

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

The report suggests that changes in interest rate expectations could have a greater impact on Circle's valuation multiples rather than short-term revenue. Although analysts only slightly increased their revenue forecasts for the company, in a higher interest rate environment, the interest income generated from stablecoin reserve assets will still support its business.

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