H.C. Wainwright reiterates Buy rating on Cango stock with $8 price target

Published 05/09/2025, 12:36
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Investing.com - H.C. Wainwright has reiterated its Buy rating and $8.00 price target on Cango Inc. (NYSE:CANG) following the company’s second-quarter 2025 financial results. The stock, currently trading at $4.73, has shown remarkable momentum with a 179.88% return over the past year and 37.5% over the last six months, according to InvestingPro data.

Cango reported revenue of $139.8 million for Q2 2025, down from $145.2 million in the previous quarter. The company, which transitioned from car purchase financing to bitcoin mining, now operates with 43.7 exahash per second (Eh/s) as of the end of August, representing 87% efficiency of its 50 Eh/s deployed capacity. InvestingPro analysis shows the company maintains a GOOD financial health score of 2.58, though it’s currently trading at a relatively high earnings multiple.

The June quarter marked a significant strategic shift for Cango through the divestiture of legacy car finance assets and the purchase of additional mining capacity, positioning it among top-tier bitcoin miners. The company has mined 3,879 bitcoins since entering the industry, including 664 in August, up from 651 in July.

Cango held 5,193 bitcoins at the end of August, valued at approximately $580 million based on recent prices. The company continues its asset-light mining approach while making strategic purchases of energy assets, including a fully-operating 50MW facility in Georgia acquired on August 11.

H.C. Wainwright noted that Cango’s operating efficiency in August was affected by heat-related curtailment, with the company aiming to improve efficiency above 90% through the acquisition of more efficient miners that can operate during curtailment periods. For deeper insights into Cango’s operational metrics and 12 additional exclusive ProTips, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Cango Inc . reported a significant loss for the second quarter of 2025. The company’s earnings per share (EPS) came in at -2.76 USD, which was much lower than the forecasted -0.23 USD. Additionally, Cango’s revenue fell short of expectations, reaching only 139.84 million USD compared to the anticipated 1.44 billion USD. These figures indicate a challenging period for the company, as the financial results were below analysts’ predictions. The earnings announcement led to a decrease in investor confidence, as reflected by the stock’s performance. These developments are crucial for investors to consider when evaluating the company’s current financial health.

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