In a report released today, Mark Palmer from Benchmark Co. reiterated a Buy rating on Canaan, with a price target of $2.00.
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Mark Palmer’s rating is based on several strategic initiatives and financial metrics that suggest a positive outlook for Canaan Inc. The company has been actively working on a turnaround by enhancing its bitcoin mining product line and expanding its self-mining capabilities. With a refreshed product stack and a growing mining footprint, Canaan is positioned to exceed 10 EH/s of global capacity, indicating significant operational improvements.
Additionally, Canaan’s financial health is bolstered by a strong bitcoin treasury and a new financing partnership that supports sales without burdening the balance sheet. The company has also provided optimistic revenue guidance for the upcoming quarter, driven by increasing demand in various regions. Furthermore, the expansion of its Avalon Home series for individual users is expected to contribute positively to its gross profit margin. These factors, combined with the market value of its bitcoin holdings and net cash, support the Buy rating and a price target of $2.
Palmer covers the Financial sector, focusing on stocks such as Coinbase Global, Hut 8, and Galaxy Digital. According to TipRanks, Palmer has an average return of 10.8% and a 48.43% success rate on recommended stocks.