Cantor Fitzgerald cuts CleanSpark price target to $17

Thursday - Cantor Fitzgerald has adjusted its price target for CleanSpark Inc. (NASDAQ:CLSK) shares, reducing it to $17 from the previous $23 while maintaining an Overweight rating on the company. The decision follows a broader industry trend and revised financial forecasts for the firm. According to InvestingPro data, CleanSpark has demonstrated strong recent momentum with a 13.85% return over the past week, despite trading significantly below its 52-week high of $24.72.

Brett Knoblauch, an analyst at Cantor Fitzgerald, expressed continued confidence in CleanSpark’s position within the Bitcoin mining sector. Despite the price target adjustment, Knoblauch’s outlook for the company remains positive, citing CleanSpark’s strategic choice to focus solely on Bitcoin mining and not to diversify into artificial intelligence as a potential advantage in the market. This focus appears to be paying off, with InvestingPro data showing impressive revenue growth of 118% in the last twelve months and a healthy gross profit margin of 55.7%.

The revision of the price target to $17 is attributed to the general derating observed across the industry. This reassessment also takes into account Cantor Fitzgerald’s lower revenue and adjusted EBITDA estimates for CleanSpark. The company’s current valuation metrics show a P/E ratio of 30.4, though its PEG ratio of 0.25 suggests potential undervaluation relative to its growth rate.

Knoblauch’s commentary highlights CleanSpark’s potential to gain a larger share of the Bitcoin network due to its commitment to its core mining business. The Overweight rating suggests that Cantor Fitzgerald continues to see the company’s stock as a favorable investment relative to the market or sector.

CleanSpark’s decision to stay its course in Bitcoin mining, despite the industry’s recent challenges, has been recognized as a strategic move that could differentiate the company from its competitors. This focus is seen as an opportunity for CleanSpark to capitalize on its strengths in the cryptocurrency mining space.

In other recent news, CleanSpark, Inc. reported a strong first quarter with earnings per share (EPS) of $0.83, significantly surpassing the analyst estimate of $0.17. The company’s revenue for the quarter reached $162.3 million, exceeding the consensus estimate of $153.06 million and marking a 120% increase from the previous year. CleanSpark’s net income for the quarter was $246.8 million, reflecting a substantial improvement from $25.9 million in the same period last year. The company also reported an adjusted EBITDA of $321.6 million, demonstrating strong operational efficiency.

Additionally, CleanSpark announced a nearly 6% increase in its bitcoin holdings, bringing its total to 11,177 bitcoins as of the end of February. The company mined 624 bitcoins in February and improved its fleet efficiency to 17.07 joules per terahash. In corporate governance news, CleanSpark shareholders elected six directors and approved executive compensation during the recent Annual Meeting. The company also ratified BDO USA, P.C. as its independent accounting firm for the fiscal year ending September 30, 2025.

CleanSpark’s CEO, Zach Bradford, expressed confidence in the company’s growth trajectory, aiming for a 50 EH/s hash rate by mid-2025. The company is planning expansion projects in Georgia, Wyoming, and Tennessee, with a focus on improving operational efficiency and reducing costs. H.C. Wainwright analyst Mike Colonnese noted CleanSpark’s impressive first-quarter results, highlighting improvements in fleet efficiency and reductions in production costs.

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