Domo signs strategic collaboration agreement with AWS for AI solutions
On Monday, Rosenblatt initiated coverage on Cipher Mining (NASDAQ:CIFR) with a Buy rating and a price target of $6.50, adding to the strong analyst consensus with price targets ranging from $7 to $9. According to InvestingPro analysis, the stock appears undervalued at its current price of $3.79, despite showing high price volatility with a beta of 2.48. The firm’s analysts cited the company’s potential entry into the high-multiple High-Performance Computing (HPC) business as a key factor for the positive outlook. Despite the recent market downturn, which saw Cipher Mining’s stock decline 18.32% year-to-date, Rosenblatt’s analysts remain optimistic about the company’s growth prospects.
Cipher Mining’s largest data center is expected to become operational in the second quarter of 2025, which is anticipated to significantly scale the company’s operations. With revenue growth of 19.26% in the last twelve months and analysts forecasting 94% growth next year, the company shows strong expansion potential. The analysts at Rosenblatt are not concerned by the absence of news regarding HPC client acquisition since the end of Cipher Mining’s exclusivity agreement with Softbank (OTC:SFTBY) on February 28, 2025. They fully expect the company’s 300 MW Barber Lake facility to secure a lucrative HPC client, which they believe will serve as a major catalyst for the stock.
The recent sell-off in Cipher Mining shares is perceived by some investors as indicative of potential funding issues. While InvestingPro data shows the company is quickly burning through cash with negative free cash flow, it maintains a moderate debt level with a debt-to-equity ratio of just 0.08 and a healthy current ratio of 1.28. Rosenblatt’s analysts argue that a deal in the HPC space should quickly mitigate these concerns. They highlight that Cipher Mining boasts best-in-class mining costs and a growing power portfolio, contributing to what they see as an attractive risk/reward ratio at the current stock price levels.
In their coverage, Rosenblatt emphasizes the company’s rapid scaling capabilities and the strategic importance of the forthcoming data center. The firm’s analysts maintain that the anticipated HPC client deal will be a significant positive development for Cipher Mining, providing a strong boost to investor confidence and potentially reversing the recent trend of stock underperformance. For deeper insights into Cipher Mining’s growth trajectory and comprehensive financial analysis, investors can access the detailed Pro Research Report available on InvestingPro, which includes over 30 additional key metrics and expert analysis.
In other recent news, Cipher Mining reported a significant earnings beat for the fourth quarter of 2024, with an earnings per share (EPS) of $0.05, surpassing the forecasted loss of $0.087. The company’s revenue grew by 75% quarter-over-quarter, reaching $42 million. Despite the positive earnings, the stock price experienced a decline, reflecting mixed investor sentiment. Additionally, Cipher Mining’s strategic initiatives include the completion of phase one at its Black Pearl facility, expected to add substantial mining capacity.
Analysts have revised their price targets for Cipher Mining, with Cantor Fitzgerald and Needham adjusting their targets to $7, while maintaining an Overweight and Buy rating, respectively. Keefe, Bruyette & Woods lowered their price target to $8 but kept an Outperform rating, citing the company’s effective power strategy and asset acquisitions. H.C. Wainwright maintained a Buy rating with an $8 target, highlighting Cipher Mining’s robust financial results and potential high-performance computing (HPC) deals.
Cipher Mining has been actively acquiring new sites, including strategic purchases suitable for HPC hosting services, expected to be operational between 2025 and 2027. The company is also in discussions for potential lease agreements at its Barber Lake site, with interest from major investors such as SoftBank (TYO:9984). These developments reflect Cipher Mining’s strategic positioning in both Bitcoin mining and AI/HPC sectors, with a significant power pipeline of approximately 2.8 gigawatts.
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