Shares of Hut 8 (HUT) surged on Monday after the investment firm Benchmark raised its price target for the energy infrastructure firm to $85, the highest on Wall Street. This boost came after Hut 8 signed a 15-year deal to lease 245 megawatts of capacity at its River Bend data campus to Fluidstack. Analyst Mark Palmer highlighted the strong terms of the deal, which include long-term, investment-grade-backed cash flows and future expansion opportunities tied to major players like Anthropic (PC:ANTPQ), Fluidstack, and Google (GOOGL).
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Palmer also praised Hut 8’s management for being patient during the early rush to build AI infrastructure. Instead of accepting early offers when pricing and partners weren’t ideal, the company waited for a deal that met its financial goals and long-term strategy. This careful approach helped them secure a stronger agreement, especially compared to other companies that moved faster but settled for less favorable terms.
Benchmark now estimates that the value of this River Bend deal is around $7.6 billion, thanks to its reliable income and the limited availability of AI-ready power with high credit ratings. Therefore, Palmer maintained his Buy rating and said that the company is now one of the best-positioned players in the public market when it comes to AI and high-performance computing infrastructure.
Is HUT Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on HUT stock based on 16 Buys assigned in the past three months, as indicated by the graphic below. Furthermore, the average HUT price target of $65.75 per share implies 27% upside potential.
