Cantor Fitzgerald cuts Cipher Mining target to $10, keeps Overweight

On Tuesday, Cantor Fitzgerald’s Brett Knoblauch adjusted the price target for Cipher Mining (NASDAQ:CIFR) shares, reducing it to $10 from the previous $11, while maintaining an Overweight rating on the stock. Currently trading at $5.70, the company has shown impressive momentum with a 29.62% gain in the past week according to InvestingPro data. The adjustment comes in the wake of a new investment from SoftBank (TYO:9984), which has provided Cipher Mining with a one-month exclusivity on the Barber Lake project.

Knoblauch highlighted the SoftBank investment as a near-term catalyst for Cipher Mining, indicating that it could have a positive influence on the company’s prospects. With a healthy current ratio of 2.57 and revenue growth of 76.34% in the last twelve months, the company shows strong operational momentum. He also pointed out that the market might be underestimating the value of Cipher Mining’s substantial power portfolio, which amounts to approximately 2.6 gigawatts. According to Knoblauch, this power capacity could lead to potential deals following the Barber Lake project.

Additionally, Cipher Mining is anticipated to nearly double its hash rate with the energization of the Black Pearl project. Knoblauch believes that these developments, along with other near-term catalysts, make Cipher Mining’s stock an attractive option for investors at this point.

Despite the positive outlook, the reduction in the price target to $10 reflects a decrease in peer multiples, which has impacted the valuation. Knoblauch reaffirmed the Overweight rating, suggesting continued confidence in the company’s performance despite the lowered price target.

In other recent news, Cipher Mining has seen significant developments. Cantor Fitzgerald reaffirmed its Overweight rating on Cipher Mining, with a target price of $11.00, indicating the company’s expected performance to surpass the average return of the stocks the firm covers over the next 12 months. The valuation was derived from a blended analysis, assigning weights to the company’s current Enterprise Value to Hash rate, projected 2025 Enterprise Value to Sales, estimated 2025 Enterprise Value to EBITDA, and the Price to Book ratio.

In a major investment development, SoftBank Group Corp. has invested in Cipher Mining, with the company planning to leverage the $50 million investment to bolster its development of industrial-scale data centers. In addition, JPMorgan upgraded Cipher Mining’s stock from Neutral to Overweight, setting a price target of $8.00, reflecting a positive outlook on the company’s expansion and operational advancements in the bitcoin mining sector.

Cipher Mining also reported a significant increase in its November 2024 bitcoin production, mining approximately 2,021 bitcoins and ending November with a balance of about 21,383 bitcoins. The company’s deployed mining rigs reached a total of 76,000, with an operating hash rate of 12.0 EH/s. Lastly, Cipher Mining’s shares experienced an increase following a surge in Bitcoin’s value, which soared past the $100,000 mark for the first time. These are recent developments and should be taken into account by current and potential investors.

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