Thursday, April 01, 2021 8:06:28 PM
https://finance.yahoo.com/news/riot-blockchain-stock-price-target-214741436.html
The price of Bitcoin currently sits roughly 4% beneath the all-time high achieved in mid-March, barely a pullback in crypto terms. Since last year's Covid-driven slump, the uptrend has shown itself to be particularly resilient. The Bitcoin price surge has been reflected in the price of Bitcoin stocks, which have been on a tear, too.
Tear might be an understatement when considering Bitcoin miner Riot Blockchain’s (RIOT) performance. The stock is up by a barely believable 6,570% over the past 12 months.
The Bitcoin miner’s latest quarterly results give some credence to the surging share price and H.C. Wainwright’s Kevin Dede says they are “indicative of mining power to come.”
In 4Q20, Riot’s mining revenue increased by 113% quarter-over-quarter to reach to $5.2 million, handily beating Dede’s $3.6 million estimate. The company turned a profit in the quarter, too, with $3.9 million in net income on a GAAP basis vs. the $3.4 million net loss reported a year ago.
“With consistently high—relative to 2020 pricing history—bitcoin prices, and what we and many others perceive as a bitcoin supply-demand imbalance, Riot's outlook appears exceedingly bright at least through the balance of the year primarily on the semiconductor and mining machine shortages Riot mostly mitigated via advanced purchase agreements, in our opinion,” the 5-star analyst said.
Exiting 2020, Riot’s hashing capacity grew by 460% year-over-year. The company has ensured it can keep increasing its hash rate. In mid-March, the company announced that it purchased an extra 1,500 Antminers, bringing Riot's overall mining network to 39,146 machines.
By the end of 2021, when fully deployed, the network will be able to generate approximately 4.0 EH/s, which amounts to about 2.4% of the Bitcoin network at today's 164 EH/s level.
Accordingly, while “cowering away from taking a shot at 2022E figures,” Dede raised the FY21 sales forecast from the previous $158.6 million to $205.3 million.
There’s also a significant increase to Dede’s 2021 EPS estimate, which due to stronger mining revenue and an improved gross margin profile, now stands at $1.95, up from the previous $0.70.
Not to be left out, the price target gets a new improved look, as well. The figure is more than doubled from $28 to $64, leaving room for a 23% uptick from current levels. Needless to say, Dede’s rating stays a Buy. (To watch Dede’s track record, click here)
Despite Riot’s incredible surge, the rest of Wall Street has so far refrained from covering this stock, and Dede’s is currently the lone review on record. (See Riot stock analysis on TipRanks)
To find good ideas for blockchain 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 analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Recent RIOT News
- Cryptocurrency Correlation With S&P 500 Rises; Riot Ends Bitfarms Acquisition; BlackRock Alters IBIT • IH Market News • 09/23/2024 06:25:21 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/23/2024 11:30:29 AM
- Form SC 13D/A - General Statement of Acquisition of Beneficial Ownership: [Amend] • Edgar (US Regulatory) • 09/23/2024 11:11:36 AM
- Riot Platforms, Inc. Early Warning Report Press Release Regarding Settlement Agreement With Bitfarms Ltd. • Business Wire • 09/23/2024 11:05:00 AM
- Bitfarms and Riot Announce Settlement • GlobeNewswire Inc. • 09/23/2024 11:00:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/18/2024 08:30:11 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/16/2024 08:39:01 PM
- Nansen Acquires StakeWithUs; Polygon Labs Launches Crypto Chip; Bitcoin ETFs See Positive Inflows • IH Market News • 09/10/2024 03:11:09 PM
- Crypto Volatility Spikes After Payroll; Massive Bitcoin ETF Outflows; Ethereum Foundation To Release Financial Report • IH Market News • 09/06/2024 06:28:02 PM
- Form SC 13D/A - General Statement of Acquisition of Beneficial Ownership: [Amend] • Edgar (US Regulatory) • 09/05/2024 10:00:06 PM
- Riot Announces August 2024 Production and Operations Updates • PR Newswire (US) • 09/05/2024 01:00:00 PM
- Riot Issues Open Letter to Fellow Bitfarms Shareholders Ahead of Upcoming Special Meeting • Business Wire • 09/03/2024 10:45:00 AM
- Bitcoin Surges Following Powell Speech; Sony Launches Soneium Blockchain; JPMorgan Cuts Miners’ Price Targets • IH Market News • 08/23/2024 07:49:31 PM
- Form SC 13D/A - General Statement of Acquisition of Beneficial Ownership: [Amend] • Edgar (US Regulatory) • 08/21/2024 12:51:53 PM
- Bitcoin and Ethereum ETFs See Low Volume, FLOKI Gains 8%, State Street Launches Digital Asset Platform • IH Market News • 08/20/2024 07:30:32 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/16/2024 01:15:05 AM
- Form 8-K/A - Current report: [Amend] • Edgar (US Regulatory) • 08/14/2024 09:16:38 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 08/14/2024 08:55:30 PM
- Form SC 13D/A - General Statement of Acquisition of Beneficial Ownership: [Amend] • Edgar (US Regulatory) • 08/14/2024 11:00:30 AM
- UBS Beats Earnings Forecasts, Intel Divests Arm Holdings, Flutter Surges 9% in Premarket Trading, and More • IH Market News • 08/14/2024 09:56:35 AM
- Riot Platforms, Inc. Reports Beneficial Ownership of 18.9% in Bitfarms Ltd. • Business Wire • 08/13/2024 09:55:00 PM
- Marathon Defies Globalization with ‘Made in USA’ Bitcoin, Mt. Gox Wallet Tests Transaction, and Latest in Crypto • IH Market News • 08/13/2024 07:35:36 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/09/2024 09:18:04 PM
- Form S-3ASR - Automatic shelf registration statement of securities of well-known seasoned issuers • Edgar (US Regulatory) • 08/09/2024 09:11:01 PM
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