H.C. Wainwright analyst Mike Colonnese reiterated a Buy rating on Hut 8 (HUT – Research Report) on March 4 and set a price target of $30.00.
Mike Colonnese has given his Buy rating due to a combination of factors that highlight Hut 8’s promising future prospects. A significant catalyst is the company’s potential to secure a high-performance computing (HPC) and artificial intelligence (AI) deal with a hyperscale client. This is supported by Hut 8’s recent advancements in developing large-scale AI data centers, including a major project in Louisiana that could generate substantial revenue once fully operational.
Additionally, Hut 8’s ongoing transformation in its Bitcoin mining operations is noteworthy. The company is set to complete a major fleet upgrade, which will significantly increase its self-mining hash rate and improve efficiency. Furthermore, the upcoming energization of the Vega site is expected to contribute considerable hosting revenues. These developments, alongside a strong development pipeline and a large cryptocurrency holding, reinforce the positive outlook for Hut 8, justifying the Buy rating.
In another report released yesterday, D.A. Davidson also initiated coverage with a Buy rating on the stock with a $23.00 price target.
HUT’s price has also changed dramatically for the past six months – from C$12.400 to C$20.300, which is a 63.71% increase.
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