Kevin Dede, an analyst from H.C. Wainwright, has initiated a new Buy rating on Cango (CANG).
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Kevin Dede has given his Buy rating due to a combination of factors that highlight Cango’s strategic transformation and growth potential. The company has shifted its focus from auto financing to bitcoin mining, achieving significant scale with a fleet capacity of 50Eh/s across four continents. This transition has been bolstered by a strong partnership with Bitmain, allowing Cango to acquire hashrate additions at below-market costs and benefit from Bitmain’s operational expertise, which reduces early-stage execution risks.
Furthermore, Cango’s financial position is robust, with a substantial increase in bitcoin holdings and liquidity following the sale of its legacy auto operations. The company’s strategic plan includes vertical integration and expansion into owning and operating mining sites, aiming to climb the ranks in the public-miner Eh/s league table. These factors, along with a reset capital structure and funded growth, underpin Dede’s Buy rating and the $8 price target, indicating material upside potential.
Dede covers the Technology sector, focusing on stocks such as DeFi Technologies, Cathedra Bitcoin Inc, and SATO Technologies. According to TipRanks, Dede has an average return of 11.8% and a 42.63% success rate on recommended stocks.