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On Friday, H.C. Wainwright analyst Kevin Dede maintained a Buy rating and a $3.00 price target for Canaan Inc . (NASDAQ:CAN), following the company’s fourth-quarter earnings report. According to InvestingPro data, the stock currently trades at $0.92, significantly below analyst consensus targets ranging from $2.49 to $8.00. The stock has experienced a challenging period, with a year-to-date decline of 55%. Canaan, a prominent player in the blockchain and artificial intelligence sector, announced its Q4 results on March 26, 2025, showcasing a revenue of $88.8 million. This figure slightly surpassed H.C. Wainwright’s estimate of $88.5 million and marked a 20.7% increase from the $73.6 million reported in the previous quarter. InvestingPro analysis reveals the company maintains strong liquidity with a current ratio of 1.87, though it faces profitability challenges with negative gross margins in recent quarters.
The revenue growth was attributed to a favorable macro environment, with higher bitcoin prices playing a significant role. Notably, over 80% of Canaan’s Q4 deliveries were to North American publicly traded miners, which also constituted about 40% of the company’s total mining machine sales for the fiscal year.
Canaan has strategically aligned its supply chain with its Malaysian manufacturing base in anticipation of potential regulatory challenges and customs restrictions from the new administration’s trade policies. The company’s record-breaking computing power sales reached 9.1 million terahashes per second (Th/s) in the fourth quarter, a 24.7% increase from the previous quarter. This was driven by strong demand for the latest-generation A15 series and the clearance of older A14 series inventory.
The company also reported an increase in self-mining revenue, which rose to $15.3 million from $9.0 million in the third quarter, with a hashrate improvement from 4.8 exahashes per second (Eh/s) to 5.4 Eh/s. Canaan’s management has emphasized a flexible approach to site acquisition and infrastructure to reach a targeted 10Eh/s deployment in North America by the end of the first half of 2025.
Canaan is also making strides in the consumer market, as indicated by the synergy with BitFuFu’s strategy, which serves 600,000 customers. The company’s innovative approach aims to tap into the home mining demand, which is believed to be significant.
Looking ahead, Canaan’s management reiterated its fiscal year 2025 revenue guidance of $900 million to $1.1 billion, with strong sales expected in the second half of the year. However, they are also exercising caution for the fourth quarter by maintaining flexibility in wafer orders. The analyst’s reiteration of the Buy rating and price target reflects confidence in Canaan’s strategic positioning and growth prospects. InvestingPro indicates the stock is currently undervalued, with analysts projecting profitability in 2025. For deeper insights into Canaan’s financial health and growth potential, investors can access the comprehensive Pro Research Report, which provides detailed analysis of this and 1,400+ other US stocks.
In other recent news, Canaan Inc. reported its fourth-quarter 2024 earnings, revealing a significant shortfall in earnings per share (EPS) and a mixed market reaction. The company posted an EPS of -$0.33, which fell short of the expected -$0.08, despite exceeding revenue expectations with $88.8 million against a projected $80.02 million. Canaan’s revenue for the quarter grew 81% year-over-year to $89 million, driven by the launch of new products and expansion in key markets, notably North America. This quarter marked the company’s first EBITDA profitability since Q1 2023, at $19.3 million, indicating improved operational efficiency. The company has also provided a robust revenue guidance for 2025, targeting up to $1.1 billion. In a separate development, Canaan announced the release of the Avalon Q, a professional-grade Bitcoin mining machine designed for home use, featuring ultra-quiet operation and compatibility with standard home electrical systems. This new product is available for preorder, highlighting Canaan’s ongoing efforts to make Bitcoin mining more accessible to a broader audience.
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