Kevin Dede, an analyst from H.C. Wainwright, reiterated the Buy rating on Canaan (CAN – Research Report). The associated price target is $3.00.
Kevin Dede has given his Buy rating due to a combination of factors involving Canaan’s operational dynamics and market positioning. Despite the tough market conditions reflected in lower sequential sales and pressure on the cryptocurrency mining rig market, Canaan has been proactive in launching its new A14 series miners, which offer improved performance metrics. This release has garnered significant preorders, indicating customer confidence and potential for revenue growth. Additionally, Canaan’s strategic efforts in self-mining have seen a setback due to regulatory changes, but the company has adapted and is expected to resume operations, suggesting a resilience that supports long-term growth prospects.
Dede’s optimism is also tempered by realistic adjustments to Canaan’s sales estimates, taking into account the current depressed prices in the ASIC market and a conservative view on the resumption of demand. Despite reducing the price target to $3 from $4, the rating maintains a belief in the company’s value, with the new target still representing a significant enterprise value-to-sales multiple based on revised sales estimates for FY24. While acknowledging the risks of dilution and volatility inherent in the crypto-verse, Dede appears to believe that Canaan’s strategic moves and new product offerings position it well for a potential market rebound, thus justifying the Buy rating.
Dede covers the Technology sector, focusing on stocks such as Canaan, Kopin, and BIT Mining. According to TipRanks, Dede has an average return of -8.0% and a 33.13% success rate on recommended stocks.
See Insiders’ Hot Stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Canaan (CAN) Company Description:
Canaan, Inc. designs and sells integrated circuits. It offers Kendryte AI and Avalon Miner products. The firm is a developer of supercomputing chips and the manufacturer of digital block chain computing equipment as well as the supplier of overall scheme for computer software and hardware of digital block chain. The company was founded by Li Jiaxuan, Liu Xiangfu and Zhang Nangeng in 2013 and is headquartered in Hangzhou, China.
Read More on CAN:
