No Comments

Riot: Crypto Price Slump Offers an Attractive Entry Point, Says Analyst – Yahoo Finance

The jury is still out on whether the “crypto winter” is once again truly upon us. Nevertheless, the space has been going through a down cycle recently, with bitcoin dictating sentiment, as usual. The leading crypto is down by 39% since November’s all-time highs.
Meanwhile, as is customary, with the decline in BTC’s price, fortunes of those in the ecosystem have followed suit. For instance, since mid-November, shares of bitcoin miner Riot Blockchain (RIOT) have retreated by 55%.
The company has been seeing other macro elements hinder its performance in 4Q21. As such, mostly on account of “delays in adding hash” on a target of reaching roughly 3.9EH/s by the end of last year, H.C. Wainwright’s Kevin Dede now expects Q4 sales of $86.8 million compared to the prior estimate of $103.8 million.
“Certainly not unique to Riot,” says the analyst, “The pandemic and logistics issues have hampered deployments across the crypto sphere, and we understand that while Riot had access to all the gear required to reach its target deployment last year, labor inputs were curtailed.”
Although in the near-term, the delays will “hurt,” the analyst is especially intrigued by one announcement in the company’s December update. Assuming full deployment of approximately 120,150 Antminer rigs, the company’s new hash target for the end of 2022 stands at 12.8 EH/s.
Furthermore, the analyst believes Wall Street is missing an important element regarding the RIOT growth story. The company’s intention to expand its power capacity to 1.5GW has been kept fairly low key. As such, while Dede notes that “a flood of new sell-side research” has been pointing out the leaders of North American crypto mining, the analyst is “surprised that most everything we have seen continues to miss Riot's “real” target of 1.5GW, not 700MW.” While timing of the full deployment is “not specifically clear,” Dede estimates the company has set its sights on year-end 2023.
With all this to come, Dede thinks the crypto price drop “offers an entry point.”
“With Riot's share price off against the opportunity of 1.5GW of ERCOT grid power used in self and hosted mining bolstered by associated contractual power pricing discount perks,” the analyst summed up, “We see Riot defending its status as a North American bitcoin mining leader.”
Accordingly, Dede rates RIOT stock a Buy, and sticks to a $50 price target. The analyst, therefore, expects the stock to climb by 152% over the coming months. (To watch Dede’s track record, click here)
Dede might think his colleagues are overlooking certain RIOT aspects, but all agree on its prospects; based on Buys only – 5, in total – the stock has a Strong Buy consensus rating. Dede’s optimistic target is no outlier; going by the $47.75 average price target, shares will appreciate ~142% in the year ahead. (See RIOT stock analysis on TipRanks)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Oil prices climb on Wednesday, settling at a two-month high, with U.S. crude inventories posting a decline for a seventh straight week and traders mostly upbeat on the outlook for the economy and oil demand.
Several top U.S. oil stocks are in buy range Wednesday as oil prices rise amid OPEC+ production disruptions.
As the Frankfurt Certificate Exchange marks its 15th anniversary year, cryptocurrencies have once again emerged as the most popular structured product certificates in Germany.
The stock is being dragged down by the dramatic sell-offs in technology stocks and cryptocurrency assets.
Marathon Digital stock has been volatile as Bitcoin adoption grows. Here’s what the fundamentals and technical analysis say about the stock.
Analyzing and updating your portfolio periodically is one way to ensure that it stays in sync with your investment objectives. Even after a 53% fall in one year, Plug Power stock is up 1,600% over a three-year timeframe.
Yahoo Finance's Brian Cheung breaks down the fourth quarter earnings results for JPMorgan Chase, Citigroup, Wells Fargo, and BlackRock.
Concerns about the sustainability of the COVID-19 vaccine market are weighing on the biotech's shares today.
Yahoo Finance Live’s Brian Sozzi discusses the top concerns and challenges for American automaker Ford moving forward.
Pinterest has been under significant pressure lately, as you can see in the chart above. Since peaking in early 2021, not only has there been a notable rotation out of high-growth technology stocks, but Pinterest's user base has actually declined a bit in recent quarters. First, Pinterest's user decline is likely a temporary headwind caused by the gradual lifting of COVID-19 restrictions rather than any problem with the business itself.
While broad market corrections are inevitable, it is always interesting to see who leads the pack. Recently, Cloudflare, Inc. (NYSE: NET) has been one of the bear leaders in the Technology sector, losing as much as 50% in as little as 2 months. From a technical standpoint, high-volume sell-offs do not fare well.
The coronavirus pandemic is creating bottlenecks in global supply chains that hurt companies' operations.
Stock futures fell Friday morning to add to losses after a tech-driven sell-off on Thursday, with investors monitoring a mixed set of bank earnings and a bigger-than-expected drop in U.S. retail sales.
In this article, we discuss the 10 dividend stocks billionaire D. E. Shaw is buying. You can skip our detailed analysis of billionaire’s hedge fund and its performance, and go directly to read 5 Dividend Stocks Billionaire D. E. Shaw is Buying. David Elliot Shaw, more commonly known as D. E. Shaw, gained prominence on […]There’s nothing magical about a stock index hitting the 10% decline that constitutes what Wall Street considers to be a correction. The odds that stocks will rise are no different after a 10% decline than they are before. This is important to keep in mind now that the Nasdaq Composite Index (COMP) is losing ground quickly, down 2.5% on Jan. 13 alone and off 7.8% from its closing high on Nov. 19, 2021.
Walt Disney Co. faces a "longer, slower profit climb" that could limit upside for its shares, in the view of one analyst.
No sooner had Rivian recovered (on Wednesday) from the sell-off it suffered when its chief operating officer was reported to have left the company Monday than Rivian promptly sold off again — Thursday morning. As of 12:45 p.m. ET, Rivian stock is down 5.1%. There's no actual news today to explain why Rivian stock might be falling.
Our call of the day from Michael Loukas, principal & CEO of TrueMark Investments, offers up 'category killers' in tech such as AI, cybersecurity and deep learning.
Yahoo Finance Live’s Julie Hyman and Brian Sozzi break down how Boston Beer and Sherwin-Williams are trading lower today.
These three stocks are yielding between 5.3% and 7.9%, but they are trading at low valuations with strong catalysts to appreciate.

source

You might also like

More Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Menu