Hut 8 Mining shares target raised by Benchmark on strong outlook By Investing.com

On Friday, Benchmark, a financial advisory firm, raised the price target for Hut 8 Mining Corp. (NASDAQ:HUT) shares to $17.00, an increase from the previous target of $12.00, while maintaining a Buy rating on the stock. The adjustment comes after the company’s shares surpassed the earlier price target.

The new price target is derived from a sum-of-the-parts analysis, which factors in a 4.5x enterprise value/revenue multiple on the forecasted fiscal year 2024 revenue of $185.3 million. Additionally, the valuation includes the market value of the company’s holdings of 9,102 bitcoins as of March 31.

Benchmark’s analyst highlighted the recent re-rating of listed bitcoin mining stocks, attributing the positive sentiment to the increasing recognition of the value of the miners’ power assets. Over the past three weeks, the average fiscal year 2024 enterprise value/revenue multiple for a selected group of listed miners has risen to 7.8x, a significant jump from the 5.2x seen two months prior.

Hut 8 Mining’s upward revision in price target reflects the firm’s confidence in the company’s performance and prospects. The maintenance of the Buy rating suggests that Benchmark views the stock as a favorable investment opportunity based on current market conditions and the company’s financial outlook.

In other recent news, Hut 8 Mining Corp. reported a significant increase in Q1 2024 revenue and net income. The company’s revenue rose to $51.7 million, a 231% surge compared to the same period last year, while net income reached $250.9 million and adjusted EBITDA stood at $297 million.

Craig-Hallum recently adjusted its outlook on Hut 8, increasing the price target to $14 from the previous $12 and maintaining a Buy rating on the stock. The firm’s valuation incorporated approximately 9,100 held by Hut 8, each valued at $60,000, and the potential of the Validus assets owned by the company.

In addition, Hut 8 has entered into a strategic partnership with Ionic Digital and initiated a significant restructuring initiative aimed at enhancing operational efficiency and reducing costs.

The company’s Bitcoin holdings are valued at approximately $650 million, while its total debt is reported to be $177.6 million. These recent developments highlight Hut 8’s robust financial health and its potential for future growth.

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