Analyst Mark Palmer from Benchmark Co. maintained a Buy rating on Canaan (CAN – Research Report) and decreased the price target to $2.00 from $3.00.
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Mark Palmer has given his Buy rating due to a combination of factors that highlight Canaan’s potential for growth despite current challenges. The company demonstrated strong performance in the first quarter of 2025, with revenues surpassing expectations and record shipments of its A15 bitcoin mining rigs. Additionally, Canaan achieved a positive gross profit for the first time since the crypto market downturn, showcasing its resilience and operational efficiency.
However, the imposition of tariffs by the U.S. has created uncertainty, affecting customer orders and delaying self-mining deployments. Despite these challenges, Canaan’s shares are trading at a level that reflects a pessimistic scenario, which is unlikely to occur. The company’s substantial bitcoin and cash holdings nearly match its market capitalization, providing a solid financial foundation. Furthermore, Canaan’s advancements in bitcoin equipment manufacturing and self-mining activities position it well for future growth, justifying the Buy rating.
In another report released today, H.C. Wainwright also reiterated a Buy rating on the stock with a $3.00 price target.