Analyst Mike Colonnese of H.C. Wainwright reiterated a Buy rating on Cipher Mining (CIFR – Research Report), with a price target of $4.50.
Mike Colonnese has given his Buy rating due to a combination of factors, including Cipher Mining’s performance metrics and strategic positioning ahead of the Bitcoin halving event. Cipher Mining (CIFR) outperformed revenue estimates with $126.8 million for the year, slightly surpassing projections, while also keeping electricity costs remarkably low at $8,626 per Bitcoin, positioning them favorably against competitors. The firm’s operational hash rate remained stable at 7.2 EH/s at the year’s end and has grown since then, indicating strong operational execution. Furthermore, Colonnese is optimistic about CIFR’s planned expansion, which is set to increase its hash rate capacity significantly, and the advantageous pricing secured for future Bitmain miner purchases, which bolsters the company’s growth trajectory.
Additionally, Cipher Mining’s recent quarterly results reinforce the Buy rating. The company reported a quarter-over-quarter revenue increase of 43%, attributable to higher Bitcoin production and an uptick in Bitcoin prices. Their gross profit margin also saw a substantial increase, indicating efficient management of production costs amidst increased output. Cipher Mining’s earnings per share for the quarter exceeded expectations, marking a turnaround from a loss in the previous quarter to a gain, which underscores the company’s improving financial health. These factors collectively paint a promising picture for Cipher Mining’s future, justifying the Buy recommendation.
According to TipRanks, Colonnese is a 5-star analyst with an average return of 70.3% and a 58.49% success rate. Colonnese covers the Financial sector, focusing on stocks such as Cleanspark, Riot Platforms, and Coinbase Global.
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Cipher Mining (CIFR) Company Description:
Good Works Acquisition Corp is a blank check company.
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