(Reuters) -Wall Street brokerages began coverage of stablecoin issuer Circle Internet Group on Monday with broadly bullish ratings, though some analysts voiced concerns about its elevated valuation after the stock more than doubled since its market debut.

The New York-based company's shares were down nearly 3% in premarket trading.

Circle debuted this month at $69 per share in the first major IPO by a stablecoin issuer. The blockbuster flotation represents the biggest crypto listing since Coinbase's 2021 debut. The company had priced its IPO at $31 per share.

J.P. Morgan, Citigroup and Goldman Sachs were the lead underwriters for the offering.

After the industry-mandated quiet period expired, Barclays, Bernstein, Canaccord Genuity and Needham launched coverage with the equivalent of 'buy' ratings and price targets above $200.

"CRCL is building a market-leading digital dollar stablecoin network, with a strong regulatory edge, liquidity headstart and marquee distribution partnerships. This is hard to replicate, in our view," Bernstein analysts said in a note.

Circle is a blockchain infrastructure company best known for issuing USD Coin (USDC), a fully reserved, U.S. dollar-backed stablecoin used across crypto trading, payments, and decentralized finance.

In June, the U.S. Senate passed the GENIUS Act with bipartisan support, marking a watershed moment for the digital asset industry by establishing the first federal regulatory framework for stablecoins.

"CRCL is one of the only ways for public investors to play the blockchain infrastructure theme, and we believe stablecoins are nearing a pivotal turning point," Barclays said.

However, J.P. Morgan and Goldman Sachs pointed to the stock's elevated valuation, given its rapid rise since the IPO.

J.P. Morgan started coverage with the most bearish view on Wall Street - an 'underweight' rating with a price target of $80, implying a downside of 56% from the stock's last close of $180.43.

"We view CRCL's business and growth attractively, but valuation appears elevated," said Goldman, as the brokerage started coverage with 'neutral' and $83 price target.

Shares of Circle have surged 161% since their market debut.