On Wednesday, Rosenblatt securities increased the stock price target for Canaan Inc . (NASDAQ: NASDAQ:CAN) shares to $8.00, a significant rise from the previous target of $4.00. The firm has sustained a Buy rating on the stock.
According to InvestingPro data, the stock has shown strong momentum with a 10.31% return over the past week and appears slightly undervalued based on Fair Value analysis. The adjustment follows Canaan's recent announcement regarding its performance in December 2024 and its financial outlook for the fiscal year 2025.
Canaan, a prominent player in the bitcoin mining industry with a market capitalization of $617 million, has projected its revenues to be in the range of $900 million to $1.1 billion for FY2025. This forecast is based on the anticipated shipment of 400,000 mining systems throughout the year.
The company has made strides in its self-mining operations and has been actively growing its partnerships, though InvestingPro data indicates challenging gross profit margins of -57.5%. Moreover, Canaan has been focusing on enhancing its product line, which includes the Avalon A15 series and new products designed for home mining.
In December 2024, Canaan reported a mining hashrate of 5.44 EH/s and has set a target to achieve a global hashrate of 15 EH/s by the middle of 2025. This ambitious goal underscores the company's commitment to strengthening its position in the global mining landscape.
The analyst from Rosenblatt acknowledged the seasonal impact of Chinese New Year on the first quarter, which tends to be a period of lower productivity. Consequently, the firm has made a downward adjustment to its output expectations for the quarter. However, Rosenblatt anticipates a substantial increase in output for the remainder of 2025, which is reflected in the raised price target for Canaan stock.
With a beta of 3.28, investors should note the stock's high volatility. For deeper insights into Canaan's financial health and growth prospects, access the comprehensive Pro Research Report available on InvestingPro, which offers detailed analysis of this and 1,400+ other US stocks.
In other recent news, Canaan Inc. continues to make significant strides in its business operations. The company recently secured a new US customer for its A15XP product, contributing to its ongoing global market expansion. Moreover, Canaan has entered into a significant agreement with AGM Group Holdings Inc., although the specific terms of the deal remain undisclosed.
In another major development, Canaan announced a deal to supply AGM Group Holdings Inc. with an initial batch of 2,000 A15 Hydro Bitcoin mining machines through its Singapore subsidiary. This agreement aligns with the company's growth strategy and its commitment to environmentally friendly mining solutions. AGM Group also has the option to purchase approximately 30,000 additional Bitcoin mining units, potentially expanding their power capacity to up to 300 megawatts.
In terms of financial performance, Canaan reported a revenue surge of 105% in Q2 2024, reaching approximately $72 million, and projected revenues of around $73 million for Q3 2024. This robust financial performance underscores the company's strong market position.
Regarding analyst coverage, B.Riley Financial initiated coverage on Canaan with a Buy rating, highlighting the company's first-mover advantage in the ASIC-based unit sector.
Furthermore, Canaan has expanded its self-mining operations in Texas and Pennsylvania, marking a significant step in its efforts to increase its footprint in the cryptocurrency mining sector. These recent developments reflect Canaan's resilience and adaptability in the dynamic cryptocurrency mining market.
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