Needham analyst John Todaro has maintained their neutral stance on MARA stock, giving a Hold rating on July 25.
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John Todaro’s rating is based on a combination of factors that reflect both positive and cautious elements in Marathon Digital Holdings’ recent performance. The company reported a slight revenue beat, but this was overshadowed by lower gross profits and increased selling, general, and administrative expenses, leading to a narrow miss on adjusted EBITDA. While Marathon Digital Holdings is expanding its bitcoin holdings, management has indicated a cautious approach to capital deployment due to perceived market frothiness.
Additionally, although the company is making strides in vertical integration, the costs associated with leased sites continue to weigh on the cost of goods sold. There is also a growing optimism about Marathon’s potential in ‘inference AI’ for service-oriented solutions, but more detailed information is needed. Consequently, while there are promising aspects to Marathon’s strategy and operations, the existing challenges and uncertainties justify a Hold rating at this time.
According to TipRanks, Todaro is a top 100 analyst with an average return of 46.6% and a 72.41% success rate. Todaro covers the Financial sector, focusing on stocks such as Marathon Digital Holdings, Riot Platforms, and Iris Energy.
In another report released on July 25, Compass Point also upgraded the stock to a Hold with a $18.00 price target.