Kevin Dede, an analyst from H.C. Wainwright, reiterated the Buy rating on Canaan (CAN – Research Report). The associated price target remains the same with $3.00.
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Kevin Dede has given his Buy rating due to a combination of factors that highlight Canaan’s strategic positioning and potential for growth. Despite the challenges posed by tariff uncertainties and a fluctuating bitcoin market, Canaan’s operational strategy remains robust. The company has managed to mitigate the impact of trade tensions by relocating assembly operations to Malaysia and securing wafer capacity, ensuring flexibility and continuity in production.
Moreover, Canaan’s advancements in ASIC design, particularly with the introduction of the 3nm Avalon A16 chip, demonstrate a commitment to technological innovation. The company’s dual-engine approach, combining rig sales with an expanding self-mining fleet, provides a buffer against market volatility. This diversification, along with geographic expansion into regions like Ethiopia and Canada, reduces jurisdictional risks and capitalizes on cheaper power sources. These strategic moves, coupled with a firm ASP and the scaling of self-mining capacity, underpin the Buy rating and suggest potential for future growth.
According to TipRanks, Dede is a 4-star analyst with an average return of 4.5% and a 40.20% success rate. Dede covers the Technology sector, focusing on stocks such as Canaan, BIT Mining, and Sphere 3D.
In another report released on May 6, Benchmark Co. also initiated coverage with a Buy rating on the stock with a $3.00 price target.