Analyst Mike Colonnese from H.C. Wainwright reiterated a Buy rating on HIVE Digital Technologies and keeping the price target at $6.00.
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Mike Colonnese has given his Buy rating due to a combination of factors including HIVE Digital Technologies’ aggressive expansion plans and its undervaluation relative to peers. The company has demonstrated strong execution in rapidly increasing its hash rate, with plans to quadruple its capacity to 25 EH/s by November 2025. This expansion is fully funded, which reduces financial risk and enhances growth visibility.
Additionally, HIVE is making significant strides in its high-performance computing (HPC) business, aiming to increase its capacity and market share in the growing AI compute sector. The acquisition and retrofitting of a datacenter in Toronto is expected to significantly boost annualized HPC revenues. Despite these positive developments, HIVE’s stock has underperformed its peers, presenting an attractive valuation opportunity. Colonnese anticipates a re-rating of the stock as these growth initiatives translate into financial performance.
According to TipRanks, Colonnese is a top 100 analyst with an average return of 51.8% and a 65.96% success rate. Colonnese covers the Financial sector, focusing on stocks such as Cleanspark, HIVE Digital Technologies, and Hut 8.
In another report released on July 3, Canaccord Genuity also maintained a Buy rating on the stock with a $9.00 price target.