Aletheia Capital has reaffirmed its Buy rating and $160 price target on Circle Internet Group (NYSE:CRCL) following a distribution agreement with Hyperliquid. The target implies significant upside from the current price of $102.64, with a market cap of $25.89 billion.
The deal grants Hyperliquid exclusive distribution rights in exchange for 90% of interest income. Aletheia Capital views this as a 'margin for volume' trade-off.
Circle is securing high-velocity trading pipelines including Binance and Hyperliquid. The strategy limits Tether's distribution outside U.S. regulatory perimeters. Circle posted 51% revenue growth to $2.86 billion over the last twelve months.
The firm is cautious on near-term margins. Circle's gross profit margin stands at 8.11%, but analysts expect profitability this year.
Aletheia Capital says the deal accelerates Circle's long-term scale and network effects, expanding global market share.
In other news, shareholders approved all proposals at the annual meeting. Circle partnered with Nium for stablecoin payouts. KeyBanc initiated with Sector Weight, while Morgan Stanley raised its price target to $106.
