Riot Platforms price target lowered to $13 from $18 at Compass Point

Compass Point lowered the firm’s price target on Riot Platforms (RIOT) to $13 from $18 and keeps a Buy rating on the shares. After the company reported “poor” Q3 results that included revenue and adjusted EBITDA coming in below the firm’s prior estimates, Riot also lowered its 2024 year-end hash rate target slightly by 1.4 EH/s to 35 EH/s year-end and its 2025 target from 56.6 EH/s to 46.7 EH/s, the analyst noted. This can be attributed to permitting delays in Kentucky, potential supply-chain constraints for transformers at Corsicana, and also the firm believes to “dial back previous aggressive targets.” Riot’s cost structure “continues to look elevated compared to lower-cost peers,” but the firm sees a path for Riot to improve its current hash costs considerably from continued scale at Corsicana and stronger uptime, the analyst added.