H.C. Wainwright analyst Mike Colonnese reiterated a Buy rating on Riot Platforms (RIOT – Research Report) today and set a price target of $20.00.
Mike Colonnese has given his Buy rating due to a combination of factors including Riot Platforms’ clear growth trajectory and solid financial positioning. Riot is on course to significantly increase its hash rate to 31.5 EH/s by the end of 2024, up from the current 12.4 EH/s, indicating strong potential for scaling up operations. Additionally, the energization of the new Corsicana facility in Texas, with its first 400 MW substation now operational, is a key milestone. The company also boasts over $1.2 billion in total liquidity, ensuring it is fully funded to support expansion to 41 EH/s by the end of 2025. Despite being the lowest-cost producer among its peers, Riot’s stock has underperformed year-to-date, which Colonnese views as an attractive entry point for investors.
Furthermore, the risk factors associated with Riot’s expansion appear to be mitigated by their financial readiness and strategic investments in infrastructure and hardware. Riot has already secured the necessary mining rigs for its near-term expansion and benefits from reduced shipment times due to MicroBT’s manufacturing presence in Pennsylvania. The company’s option to purchase additional cutting-edge equipment at a favorable price further strengthens its competitive edge. Colonnese emphasizes that Riot’s history of meeting deployment timelines is a cautionary note, yet he remains optimistic about the company’s ability to execute its plans. With all these elements in consideration, Colonnese recommends a Buy, anticipating that Riot will regain its premium valuation as it deploys additional capacity in the upcoming quarters.
According to TipRanks, Colonnese is a 5-star analyst with an average return of 58.1% and a 55.00% success rate. Colonnese covers the Financial sector, focusing on stocks such as Cleanspark, Riot Platforms, and Coinbase Global.
In another report released today, Needham also reiterated a Buy rating on the stock with a $17.00 price target.
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Riot Platforms (RIOT) Company Description:
Riot Blockchain Inc is focused on building, supporting and operating blockchain technologies. Distributed blockchain technology is a decentralized and encrypted ledger that is designed to offer a secure, efficient, verifiable and permanent way of storing records and other information without the need for intermediaries. It serves as a medium of exchange, store of value or unit of account. The company’s portfolio consists of Verady, Tesspay, Coinsquare, and others.
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