Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Rosenblatt lowered its price target on Hut 8 Mining Corp. (NASDAQ:HUT) to $23.00 from $24.00 on Monday, while maintaining a Buy rating following the company’s mixed second-quarter results. Currently trading at $19.45, the stock sits within analysts’ target range of $19-$33, though InvestingPro analysis suggests the shares may be overvalued at current levels.
The research firm noted that despite disappointing top-line performance, Hut 8 Mining delivered significant gross margin expansion to 43.48% that more than offset revenue shortfalls as the company continues its transition to a power/infrastructure pure play. The company maintains a Fair financial health score according to InvestingPro metrics.
Rosenblatt reduced profit estimates due to higher operating expenses but identified several potential catalysts ahead, including the ABTC merger expected to close in early September and accelerating revenue growth in the second half of 2025.
The firm’s new $23 price target is based on 16 times its 2027 Adjusted EBITDA estimate for the mining company.
Hut 8 Mining is also making progress on its High-Performance Computing (HPC) initiatives, which Rosenblatt views as part of the company’s compelling opportunity despite the mixed quarterly performance.
In other recent news, Hut 8 Corp has reported substantial financial improvements in its second-quarter earnings for 2025, showcasing a 17% year-over-year revenue increase to $41.3 million. The company also made a significant turnaround from a net loss to a net income of $137.3 million, primarily driven by gains in digital assets. These developments were discussed during the company’s earnings call, which emphasized strategic advancements in Bitcoin mining and infrastructure expansion. While the company’s stock price experienced a decline, the focus remains on its financial performance and strategic initiatives. The earnings results highlight Hut 8’s efforts to position itself for future growth in the digital asset space. Investors and analysts are closely observing these developments as the company continues to expand its operations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.