On Friday, Rosenblatt Securities adjusted its outlook on shares of Canaan Inc . (NASDAQ:CAN), a prominent player in the cryptocurrency mining industry. The firm increased its price target for Canaan's shares to $4.00, up from the previous target of $3.00, while reaffirming its Buy rating on the stock.
The revision follows a series of meetings held today with Canaan's top executives, including co-founder, Chairman, and CEO Nangeng Zhang, CFO James Cheng, and other key personnel. During these discussions, the management team presented a compelling vision for the company's revenue and income potential by 2025, driven by a sharp rise in Bitcoin (BTC) prices.
Canaan's customer base, composed mainly of BTC miners, is reportedly expediting the upgrade of their mining equipment in response to the favorable market conditions. This surge in demand has resulted in a fully booked backlog for the company until February, with orders for March also seeing a significant uptick.
The firm noted a substantial increase in the average selling price of Canaan's mining hardware, which is measured in dollars per Terahash per second ($/TH/s). This metric has climbed by over 50% and is expected to maintain its upward trajectory. In light of these developments, Rosenblatt has revised its 2025 estimates for Canaan upward, justifying the elevated 12-month price target for the company's stock.
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