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On Thursday, Cantor Fitzgerald made an adjustment to Cipher Mining’s (NASDAQ:CIFR) financial outlook, with analyst Brett Knoblauch revising the price target down to $7 from the previous $8, while maintaining an Overweight rating on the company’s stock. According to InvestingPro data, analyst targets for the stock range from $7 to $9, suggesting significant upside potential from the current price of $3.88.
Knoblauch’s reassessment comes amid a broader devaluation within the sector, influenced by a downturn in Bitcoin prices. Despite the reduced price target, the analyst remains optimistic about the company’s prospects. With a market capitalization of $1.4 billion, Cipher Mining is on the verge of completing phase 1 at its Black Pearl facility, which is anticipated to contribute significantly to its operations by adding approximately 9.5 EH/s of mining capacity and bringing 150 MW of power online.
Cipher Mining’s ventures in AI and high-performance computing (HPC) are also noteworthy. The company has accumulated a substantial power pipeline of 2.8 GW, of which 1.5 GW is pending interconnect approvals. Additionally, Cipher Mining has immediate power availability at its Barber Lake site and expects a considerable increase in power availability in 2027 with the development of Reveille and three other 500 MW sites.
The analyst’s report underscores the belief that the risk/reward balance remains favorable for Cipher Mining at the current stock levels. Cipher Mining’s advancements in both Bitcoin mining and AI/HPC sectors are integral to its growth strategy and are expected to bolster its position as one of the most profitable mining entities.
As the company navigates the fluctuating landscape of cryptocurrency and technology, Cantor Fitzgerald’s revised price target reflects a cautious yet positive outlook for Cipher Mining’s future performance in the market. InvestingPro analysis indicates that while the company currently operates with moderate debt levels, analysts expect both sales growth and profitability improvements in the current year. For deeper insights into Cipher Mining’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Cipher Mining reported a significant earnings beat for the fourth quarter of 2024, with an earnings per share (EPS) of $0.05, surpassing the forecasted loss of $0.087. The company’s revenue increased by 75% quarter-over-quarter, reaching $42 million, highlighting its robust financial performance. This growth was driven by successful operational upgrades, particularly at the Odessa site, which contributed to a GAAP net income of $18 million. Despite these positive results, analysts at Keefe, Bruyette & Woods and Needham adjusted their price targets for Cipher Mining to $8.00 and $7.00, respectively, while maintaining their Outperform and Buy ratings. Keefe analysts cited the company’s effective power strategy and strategic acquisitions as factors supporting their long-term view. Meanwhile, Needham noted the conclusion of Cipher’s exclusive negotiation period with SoftBank (TYO:9984) for the Barber Lake site, suggesting a high likelihood of a lease agreement soon. H.C. Wainwright also maintained a Buy rating with an $8.00 price target, emphasizing Cipher’s strong fundamentals and the potential for high-performance computing (HPC) deals. The company has been expanding its pipeline, including acquiring 337 acres at Barber Lake, which is considered ideal for HPC/AI due to its power and fiber access.
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