Citizens analyst reiterates Market Outperform rating on Hut 8 Mining stock

Investing.com - Citizens analyst reiterated a Market Outperform rating and $65.00 price target on Hut 8 Mining Corp. (NASDAQ:HUT) amid broader sector weakness.

The analyst noted that their coverage universe has experienced an average decline of approximately 14.4% since November 3, 2025, suggesting a potential market correction in the near future.

Citizens identified several potential catalysts that could drive a sector recovery, including upcoming hyperscale company reports in February and anticipated revelations from OpenAI regarding its operating model and financing structure.

Additional factors that could positively impact the sector include potential government incentives from the current administration aimed at maintaining U.S. leadership in AI technologies, specifically mentioning zoning, power allocation, and possible financing options.

The firm also highlighted the importance of continued contract signings with customers that have meaningful ready-powered capacity for 2026 and 2027, specifically naming Hut 8 Mining, IREN, and RIOT as companies with Market Outperform ratings in their coverage universe.

In other recent news, Hut 8 Corp reported strong financial results for the third quarter of 2025, showcasing significant year-over-year growth in both revenue and net income. Despite this positive financial performance, the company’s stock experienced a decline, which could be linked to market concerns over future earnings projections and competitive pressures. Additionally, Hut 8 announced it has entered into a definitive agreement to sell its 310-megawatt portfolio of four natural gas-fired power plants in Ontario to TransAlta Corporation. This sale follows the stabilization of the portfolio, which was previously acquired out of bankruptcy. In other developments, cryptocurrency-related stocks, including Hut 8, faced a downturn as Bitcoin fell below the $100,000 mark, impacting several crypto companies. While Hut 8’s stock dropped 12%, other companies in the sector also experienced declines. These recent developments highlight the dynamic environment surrounding Hut 8 Corp and its operations.

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