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Investing.com - Clear Street has raised its price target on Hut 8 Mining Corp. (NASDAQ:HUT) to $33.00 from $23.00 while maintaining a Buy rating on the stock. The new target sits within the broader analyst range of $23-$36, with InvestingPro data showing the stock has already gained 23.3% in the past week.
The price target increase follows Hut 8’s August 26 announcement that it has advanced four new U.S. sites totaling 1.53 GW into development, more than doubling its platform potential to 2.5 GW across 19 sites. With a market capitalization of $2.81 billion and a healthy current ratio of 1.81, InvestingPro data indicates the company operates with a moderate debt-to-equity ratio of 0.29.
Clear Street describes this expansion as a "transformative step" that enhances scale and accelerates the company’s pivot toward diversified energy and digital infrastructure with artificial intelligence and high-performance computing (HPC) upside.
The research firm sees a high probability of a material HPC hosting agreement in 2025, which has potential to drive significant earnings growth for the mining company.
With over 2 GW of development opportunities, Clear Street estimates approximately $1 million of EBITDA per energized MW, suggesting Hut 8 could more than double its EBITDA power over the next twelve months.
In other recent news, Hut 8 Mining Corp. reported a significant 17% year-over-year revenue increase in its second-quarter earnings, reaching $41.3 million, along with a shift from a net loss to a net income of $137.3 million. The company attributes these financial improvements to gains in digital assets and strategic expansion in Bitcoin mining infrastructure. Benchmark and Canaccord Genuity both raised their price targets for Hut 8 to $36, maintaining a Buy rating, with Canaccord Genuity highlighting the company’s substantial Bitcoin holdings valued at nearly $1.2 billion. Meanwhile, Rosenblatt lowered its price target to $23, citing mixed results despite the company’s gross margin expansion offsetting revenue shortfalls. Hut 8 also announced a $1 billion at-the-market equity offering program, replacing a previous $500 million offering. This new program allows for the sale of common stock through various agents, including Cantor Fitzgerald & Co. and Canaccord Genuity. Additionally, the company plans to develop four new U.S. sites with a total capacity of 1.53 gigawatts, marking a significant expansion in its operations. These developments underscore Hut 8’s strategic positioning in the cryptocurrency mining sector.
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