John Todaro, an analyst from Needham, maintained the Buy rating on Riot Platforms (RIOT – Research Report). The associated price target was lowered to $12.00.
John Todaro has given his Buy rating due to a combination of factors including the resolution of litigation with Rhodium, which is expected to reduce SG&A expenses and free up additional capacity for Riot Platforms. Despite a miss on adjusted EBITDA, the resolution of this litigation is anticipated to moderate future expenses, providing a more favorable financial outlook.
Furthermore, John Todaro is optimistic about the potential of Riot’s Corsicana site, which is being developed with a focus on a full-stack build rather than just a powered shell. This approach is expected to yield better economic returns, as full-stack builds are estimated to be significantly more profitable. Although the company is still in the early stages of securing tenants for its HPC facilities, the strategic focus and potential for improved financial performance underpin the Buy rating.
In another report released on April 30, KBW also maintained a Buy rating on the stock with a $16.00 price target.