Analyst Kevin Dede of H.C. Wainwright reiterated a Buy rating on Canaan, retaining the price target of $3.00.
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Kevin Dede has given his Buy rating due to a combination of factors that highlight Canaan’s potential for growth and resilience in the market. The company’s recent earnings report for the June quarter revealed a promising outlook, with revenue expected to increase by 25-45% sequentially in the current quarter. This positive forecast is supported by a significant rise in mining rig sales and a strong performance in proprietary mining, despite some margin challenges.
Furthermore, Canaan’s strategic focus on U.S. operations and the development of their next-generation mining rig, the A16, are expected to drive future growth. The company also holds a substantial amount of Bitcoin, which adds to its financial strength. While there are risks associated with the volatility of the cryptocurrency market and potential dilution, the current valuation and growth prospects justify the Buy rating, with a price target set at $3.00.
In another report released yesterday, Rosenblatt Securities also maintained a Buy rating on the stock with a $4.00 price target.