J.P. Morgan analyst Reginald Smith has maintained their neutral stance on RIOT stock, giving a Hold rating on July 19.
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Reginald Smith has given his Hold rating due to a combination of factors impacting Riot Platforms. The company’s recent financial results showed a slight decline in revenue and cash operating profit, primarily due to seasonal factors affecting bitcoin production. While Riot is making strategic moves to leverage its power assets for high-performance computing (HPC) data centers, these developments are still in the early stages, and significant announcements are not expected in the near term.
Riot’s management has increased its hashrate target, indicating a focus on expanding its bitcoin mining capabilities. However, the substantial capital expenditures required for this expansion, along with the current cash cost per coin, suggest a cautious approach. Although Riot holds a considerable amount of unrestricted cash, the ongoing investments and operational costs present challenges. These elements contribute to the Hold rating, as the company balances its immediate bitcoin mining operations with its longer-term HPC ambitions.
According to TipRanks, Smith is a 4-star analyst with an average return of 12.7% and a 52.00% success rate. Smith covers the Financial sector, focusing on stocks such as Riot Platforms, Marathon Digital Holdings, and Cleanspark.
In another report released on July 19, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $14.50 price target.