Needham analyst John Todaro maintained a Buy rating on Cipher Mining (CIFR – Research Report) today and set a price target of $7.00.
John Todaro has given his Buy rating due to a combination of factors, primarily focusing on the developments at Cipher Mining’s Barber Lake site. The exclusivity agreement with SoftBank is ending, which opens up opportunities for other potential tenants who have been evaluating the site, increasing the likelihood of a lease agreement in the near future. Todaro estimates a 60% chance that the site will be utilized for high-performance computing (HPC) purposes.
Additionally, there is a noted challenge in the market where small and mid-cap miners face difficulties securing financing without a customer in place, while financiers require a customer before providing funds. Todaro suggests that SoftBank might become more involved in debt financing to address this issue. Despite a slight reduction in the price target due to adjusted EBITDA projections and lower bitcoin price estimates, the overall outlook remains positive, supporting the Buy rating.
Todaro covers the Financial sector, focusing on stocks such as Cipher Mining, Coinbase Global, and Riot Platforms. According to TipRanks, Todaro has an average return of 40.8% and a 61.34% success rate on recommended stocks.
In another report released today, KBW also maintained a Buy rating on the stock with a $10.00 price target.
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