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Investing.com - Benchmark reiterated its buy rating and $2.00 price target on Canaan Inc . (NASDAQ:CAN) on Friday. The research firm maintained its positive outlook on the cryptocurrency mining equipment manufacturer despite the stock trading at $0.63, with a market capitalization of $288 million. According to InvestingPro analysis, the stock appears undervalued at current levels, with 12 key financial indicators available for deeper analysis.
The price target represents substantial upside potential for Canaan shares, which have declined 73% over the past six months and currently trade at just 19% of their 52-week high of $3.27. Benchmark’s valuation is based on a 1x enterprise value to revenue multiple applied to its fiscal year 2025 revenue estimate of $533.5 million, plus the market value of the company’s unrestricted bitcoin holdings. Get comprehensive valuation metrics and detailed analysis with a InvestingPro subscription.
Benchmark believes Canaan stock currently reflects "extremely negative investor sentiment and/or indifference" toward the company. This view is supported by InvestingPro’s Financial Health Score of 1.41 (Weak), though the company maintains a healthy current ratio of 1.5 and holds more cash than debt on its balance sheet. The firm suggests this negative sentiment has created an attractive entry point for investors seeking exposure to the cryptocurrency mining sector.
The research firm views Canaan shares as offering "an attractive source of optionality" at current price levels. This perspective suggests the stock could provide leveraged upside potential if market conditions or company-specific factors improve.
Benchmark indicated that even modest positive developments could significantly impact Canaan’s share price, stating it would "take very little in the way of good news regarding the company to drive its share price meaningfully higher."
In other recent news, Canaan Inc. reported a notable increase in its Bitcoin production for May 2025, achieving a record 109 bitcoins, which marks a 25% rise from the previous month. Despite facing increased tariffs on its Malaysia-manufactured mining equipment, the company reached a historical peak in installed computing power with hashrates of 7.27 EH/s operationally and 8.75 EH/s installed. Additionally, Canaan’s executive leadership, including CEO Nangeng Zhang and CFO James Jin Cheng, purchased 817,268 American Depositary Shares at an average price of $0.76 per ADS, signaling confidence in the company’s future. The board of directors also approved a $30 million stock repurchase program, further highlighting their belief in Canaan’s long-term prospects. However, Canaan and an institutional investor mutually terminated a $100 million preferred share financing agreement due to unexpected market conditions. Northland initiated coverage of Canaan with a Market Perform rating, noting its strategic positioning to become a key provider in the cryptocurrency mining sector. Canaan aims to expand its self-mining operations to 10 EH/s in North America and 15 EH/s globally by mid-2025. These developments reflect Canaan’s ongoing commitment to transparency and growth in the cryptocurrency space.
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