Analysts raised their target price for Circle, citing rising oil prices and interest rate expectations as positive factors for stablecoin business.

Several institutions have raised their target prices for stablecoin issuer Circle Internet Group, influenced by rising oil prices and changes in interest rate expectations. On Tuesday, Circle's stock price rose nearly 8% to $103.71, a near four-month high. Mizuho analysts Dan Dolev and Alexander Jenkins raised their target price for Circle from $90 to $100, maintaining a "Neutral" rating. Analysts pointed out that the recent rise in oil prices—up about 6% in the past five days and about 24% year-to-date—may lower market expectations for interest rate cuts in 2026. The report believes that changes in interest rate expectations may have a greater impact on Circle's valuation multiples than on short-term revenue. Although analysts only slightly raised their revenue forecasts for the company, the interest income generated by stablecoin reserve assets will still support its business in a higher interest rate environment. However, analysts also warned that as the regulatory framework for stablecoins becomes clearer, market competition may intensify, potentially putting downward pressure on industry profit margins in the long run.