MARA Holdings stock rating upgraded to Buy by Compass Point on valuation

Investing.com - Compass Point upgraded MARA Holdings Inc (NASDAQ:MARA) from Neutral to Buy while maintaining its $30.00 price target on Monday. The stock is currently trading at $10.07, near its 52-week low of $9.71, with InvestingPro data showing it has fallen over 61% in the past year.

The upgrade comes as Compass Point believes the recent sell-off related to Bitcoin’s price retrace has overshot MARA’s fundamentals. The firm notes that MARA’s market cap of $3.81 billion was trading at approximately 87% of its Bitcoin holdings per basic share at Friday’s market close, assigning minimal value to the company’s 60.4 Eh/s mining fleet and 1.8GW of energy capacity. With a P/E ratio of just 5.42, InvestingPro analysis indicates the stock is trading below its Fair Value, suggesting potential upside for investors seeking undervalued opportunities.

MARA’s strategy focuses on smaller datacenters across diverse geographic locations to serve inference demand with lower capital expenditure requirements. The company’s board composition resembles that of a technology company rather than a Bitcoin miner, featuring executives with backgrounds at Mastercard, Intel, and Siemens. According to InvestingPro data, MARA has generated $919.17 million in revenue over the last twelve months, with impressive growth of 53.51%, though it operates with a significant debt burden.

Key structural catalysts include the pending Exaion deal, representing a $168 million investment for a 64% stake in EDF’s HPC/AI cloud subsidiary, with a likely closing window in Q4 2025 or early 2026. MARA also plans to build 400MW of gas-fired power and datacenter capacity in West Texas through its MPLX partnership, scalable to 1.5GW.

Compass Point remains bullish on medium to long-term Bitcoin price appreciation and views MARA’s current pricing as effectively de-risking its artificial intelligence initiatives while providing additional upside potential.

In other recent news, Marathon Digital Holdings Inc. reported impressive third-quarter earnings for 2025, surpassing analyst expectations. The company achieved an earnings per share of $0.27, significantly beating the anticipated loss of $0.10. Revenue also slightly exceeded projections, reaching $252.4 million compared to the expected $251.76 million. Despite these positive results, Cantor Fitzgerald reduced its price target for Marathon Digital to $21, maintaining an Overweight rating. Rosenblatt also lowered its price target to $22, while keeping a Buy rating, citing Marathon’s underperformance compared to its peers in 2025. Marathon announced a joint initiative with MPLX LP to develop integrated power generation facilities, which will include long-term access to low-cost natural gas power. Additionally, the company is making a strategic pivot towards artificial intelligence operations, reflecting its evolving business strategy. These developments highlight significant changes and achievements for Marathon Digital in the current landscape.

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