Analyst Kevin Dede of H.C. Wainwright reiterated a Buy rating on Canaan (CAN – Research Report), retaining the price target of $3.00.
Kevin Dede has given his Buy rating due to a combination of factors including Canaan’s recent operational updates and strategic initiatives. The company has shown promising performance in the December quarter, with revenue expectations surpassing previous estimates, indicating a solidifying environment for mining rigs. Additionally, Canaan’s strategic partnerships and hosting arrangements are expected to enhance its self-mining capabilities, aiming for a significant increase in hash rate by the end of the year.
Despite the competitive pressures and pricing challenges in the market, Canaan’s cost-effective power arrangements and strategic collaborations are seen as advantageous. The company’s guidance for 2025, while viewed conservatively by the analyst, suggests a potential for substantial revenue growth. These factors, combined with a cautious yet optimistic outlook on pricing recovery, underpin Kevin Dede’s Buy rating for Canaan’s stock.