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On Wednesday, Clear Street analysts initiated coverage on Cipher Mining (NASDAQ:CIFR) with a Buy rating and set a price target of $6.00. The new coverage highlights Cipher Mining’s potential in the Bitcoin (BTC) mining industry, projecting a 56% compound annual growth rate (CAGR) in BTC mining revenue through 2027. Currently trading at $2.74, the stock sits near its 52-week low, with analyst targets ranging from $6 to $9. InvestingPro data reveals the company has already demonstrated strong revenue growth of 19.26% in the last twelve months.
Cipher Mining’s stock is currently perceived as undervalued, according to Clear Street, due to the anticipated growth in revenue and the company’s promising pipeline. The firm also noted the added benefit of Cipher Mining’s 300MW site prepared for artificial intelligence and high-performance computing (AI/HPC) applications. This aspect of the business is seen as a "free option" that could significantly increase the company’s value. InvestingPro analysis shows the company operates with a moderate debt level and maintains a healthy current ratio of 1.28, suggesting financial stability to support its expansion plans.
The analysts underscored the high probability of Cipher Mining securing a high-performance computing (HPC) contract within the year, which they estimate could contribute approximately $5 to the equity value per share. This detail was mentioned in the context of the potential upside for investors, as outlined in exhibit 3 of the report.
In terms of valuation, Clear Street finds Cipher Mining shares attractive at 3.3 times the 2026 estimated earnings and 2.5 times the 2027 estimated earnings. The firm draws a distinction within the data center sector between pure play BTC miners and those with HPC optionality, like Cipher Mining. The analysts believe that BTC miners, with their experience in optimizing efficiency in mining operations, are well-positioned to excel as HPC data center operators.
In other recent news, Cipher Mining has been the subject of various analyst assessments and financial projections. The company received a downgrade from JPMorgan, with analyst Reginald Smith shifting the stock rating from Overweight to Neutral. This decision was based on anticipated challenges and the need for additional capital to expand beyond the first half of 2025. Meanwhile, Rosenblatt initiated coverage with a Buy rating and a $6.50 price target, citing potential growth in the high-performance computing (HPC) sector as a key factor.
Cantor Fitzgerald adjusted its price target for Cipher Mining from $8 to $7 while maintaining an Overweight rating, attributing the change to a broader market devaluation. They still express optimism about the company’s upcoming operational expansions. Keefe, Bruyette & Woods also revised their price target from $10 to $8, maintaining an Outperform rating due to the company’s strategic acquisitions and power strategy. Needham reduced its price target to $7, maintaining a Buy rating, and noted that Cipher Mining’s recent financial performance met market expectations.
These recent developments highlight a mix of cautious optimism and strategic adjustments among analysts, reflecting varying perspectives on Cipher Mining’s growth potential and market position.
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