Canaan stock target cut to $2 by Benchmark, retains buy rating

On Wednesday, Benchmark analysts adjusted their expectations for Canaan Inc . (NASDAQ:CAN), a blockchain and artificial intelligence technology company, by lowering the price target on its shares to $2.00 from the previous $3.00. Despite this reduction, the firm maintained its Buy rating on the stock. According to InvestingPro data, the stock is currently trading at $0.76, down about 63% year-to-date, though analysts maintain an average price target suggesting significant upside potential.

The price target revision follows Canaan’s latest earnings report released on Tuesday, which showcased the company’s resilience in the face of challenges. Canaan reported revenue figures that surpassed management’s own forecasts, despite facing headwinds in its core businesses of bitcoin mining equipment and proprietary self-mining operations. InvestingPro analysis shows the company holds more cash than debt on its balance sheet, with revenue growth of nearly 66% in the last twelve months.

Canaan’s first quarter of 2025 was notable for a record number of shipments of its A15 series bitcoin mining rigs. The company also achieved improved product pricing and a record-high quarterly mining revenue. These developments contributed to Canaan’s ability to turn a positive gross profit of $0.6 million for the first time since the onset of the cryptocurrency bear market two years prior.

The company’s diversified platform has been credited with helping it navigate through the industry’s volatility. Canaan’s recent performance, particularly in terms of revenue and profit, indicates a significant milestone in its recovery and growth trajectory.

The adjusted price target reflects the cautious optimism surrounding Canaan’s ability to continue its positive performance amidst the fluctuating cryptocurrency market. While the target has been lowered, the maintained Buy rating suggests that Benchmark sees potential value in Canaan’s stock for investors.

In other recent news, Canaan Inc. has reported its financial results for the first quarter of 2025, as filed with the U.S. Securities and Exchange Commission (SEC). While specific financial details were not disclosed in the summary, the full unaudited financial statements are available in the company’s Form 6-K. Additionally, Canaan Inc. received a compliance notice from Nasdaq due to non-compliance with the minimum bid price requirement of $1.00 per share. The company has a 180-day period, until November 10, 2025, to rectify this issue.

Furthermore, Canaan provided an update on its Bitcoin mining operations, stating that it mined 87 bitcoins in April 2025, ending the month with a balance of 1,424 bitcoins. The company’s North American operations have expanded, contributing over 1.5 EH/s to their computing power. Canaan also announced the termination of an agreement for an additional $100 million in preferred share financing due to market conditions, although the first tranche was received successfully. These developments reflect Canaan’s ongoing activities and challenges in the cryptocurrency and financial markets.

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