Cantor Fitzgerald cuts RIOT stock target to $18, maintains Overweight

Published 04/04/2025, 13:08
Cantor Fitzgerald cuts RIOT stock target to $18, maintains Overweight

On Friday, Cantor Fitzgerald analyst Brett Knoblauch adjusted the price target on Riot Platforms (NASDAQ:RIOT) shares, bringing it down from $21.00 to $18.00 while still maintaining an Overweight rating on the stock. According to InvestingPro data, RIOT is currently trading at $7.30, suggesting significant potential upside based on analyst consensus targets ranging from $9 to $23. The revision follows RIOT’s announcement of increased Bitcoin mining production in March, achieving a new post-halving monthly high.

RIOT reported mining 533 Bitcoin in March, averaging 17.2 Bitcoin per day, an uptick from the 470 Bitcoin, or 16.2 per day, mined in February. This growth was attributed to operational improvements, with operational hash rate as a percentage of deployed hash rate climbing to 90.0% from 87.5% the previous month. RIOT’s deployed hash rate also saw a marginal increase from 33.6 EH/s in February to 33.7 EH/s by the end of March. InvestingPro analysis shows the company maintains a healthy gross profit margin of 30.24% and has achieved revenue growth of 34.2% over the last twelve months.

Despite these operational successes, RIOT experienced a slight decrease in its share of the overall network, dropping to 4.13% from 4.15%. This was due to average network hash rate growth outpacing RIOT’s deployed hash rate growth. Based on an average Bitcoin price of $85,159 during March, RIOT’s Bitcoin mining revenue was estimated at $45.4 million, a slight rise from $45.1 million in February.

The company’s fleet efficiency remained constant at 21 J/TH, but power costs increased to $0.038/kWh, up from $0.036/kWh, largely because the company earned fewer power credits. The analyst also noted positive developments in RIOT’s artificial intelligence and high-performance computing (AI/HPC) ventures. A feasibility study by Altman Solon confirmed that RIOT’s Corsicana site is highly suitable for AI/HPC inferencing and training workloads, aligning with the needs of major cloud service providers.

In conclusion, while the analyst reiterated a positive outlook on RIOT’s Bitcoin mining business and AI/HPC potential, the lowered price target reflects revised estimates and a broader sector de-rating. InvestingPro has identified 13 additional investment tips for RIOT, including insights on valuation metrics and growth prospects. For a comprehensive analysis of RIOT’s financial health and future potential, investors can access the detailed Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks.

In other recent news, Riot Platforms reported a record production of 533 Bitcoin in March 2025, marking a 13% increase from February and a 25% rise year-over-year. The company’s average daily Bitcoin production improved to 17.2, reflecting a 25% increase compared to the previous year. Riot’s operational capacity saw a minor uptick, with its deployed hash rate reaching 33.7 EH/s in March. Additionally, Riot Platforms has entered a term sheet to acquire assets from Rhodium, which includes terminating a costly hosting contract, potentially saving the company upwards of $90 million over its duration.

Cantor Fitzgerald recently reaffirmed its Overweight rating on Riot Platforms with a price target of $21.00, following Riot’s resolution of a legal dispute and its strategic focus on AI/High-Performance Computing (HPC) development. Meanwhile, Needham adjusted its price target for Riot Platforms to $13.50, maintaining a Buy rating, despite the company missing adjusted EBITDA expectations due to higher SG&A expenses. The firm noted that Riot’s favorable power costs and strategic shift towards evaluating AI/HPC applications at its Corsicana facility could offer long-term potential.

Riot Platforms also reported a 105% year-over-year surge in Bitcoin mining revenue for the fourth quarter of 2024, amounting to $123 million, driven by a higher average price of Bitcoin mined. Analysts from Cantor Fitzgerald anticipate continued revenue growth, citing the projected rise in installed hash rates and current Bitcoin prices. Riot Platforms continues to expand its workforce and infrastructure, with a focus on enhancing its Bitcoin network operations and exploring new technological opportunities.

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