Circle’s Wild 490% Jump Draws Sell Rating From Bank That Led IPO

Stablecoin issuer Circle Internet Group Inc. has surged more than five-fold since its initial public offering earlier this month, but analysts at lead underwriter JPMorgan Chase & Co. say that the rally has gotten out of hand.

“We see competition as a potential threat to Circle,” JPMorgan’s Kenneth Worthington wrote in a note initiating coverage on the company at underweight. He also assigned the lowest price target on Wall Street, $80, implying a nearly 60% drop in the stock.

JPMorgan’s bearish call is surprising as firms that help guide a company’s move to the public market tend to be more ...