Crypto miner Hut 8 (HUT) received a wave of positive sentiment from Wall Street after securing approval for a 300-megawatt data center project in Louisiana. The West Feliciana Parish Planning & Zoning Commission unanimously approved the building permit, which Hut plans to lease to an unnamed AI hyperscaler. Next, Hut 8 will seek final approval from the Parish Council, which five-star Benchmark analyst Mark Palmer believes is “highly likely.” Palmer called the potential partnership a “game-changer.”
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Indeed, the backing from the hyperscaler could help Hut access project financing for the $2.5 billion needed for the first phase of development. Following the update, Palmer reaffirmed his Buy rating on Hut 8 stock with a $41 per share price target. It’s worth noting that, so far, Palmer has enjoyed an 88% success rate on HUT stock, with an average return of 127% per rating. Separately, Cantor Fitzgerald’s Brett Knoblauch, who is a four-star analyst, also maintained his Overweight rating.
Nevertheless, despite today’s optimism, shares are down over 5% at the time of writing.
Is Hut 8 Stock a Buy?
Overall, analysts have a Strong Buy consensus rating on HUT stock based on nine Buys assigned in the past three months, as indicated by the graphic below. After a 115% rally in its share price over the past year, the average HUT price target of $34.75 per share implies 37.1% upside potential.
