Analyst Mike Colonnese of H.C. Wainwright reiterated a Buy rating on Riot Platforms (RIOT – Research Report), with a price target of $19.00.
Mike Colonnese has given his Buy rating due to a combination of factors impacting Riot Platforms’ growth and financial position. He notes the company’s significant expansion with the completion of its 400 MW project at Rockdale, increasing its operating hash rate by 28% year-over-year to 12.4 EH/s. Moreover, Riot Platforms has managed to increase its total Bitcoin production by 19% year-over-year. A strategic partnership with MicroBT has been key, as it allows Riot Platforms to acquire the latest generation miners to support future expansion. Colonnese is also optimistic about the company’s roadmap, highlighting the planned energization of new facilities and a fully funded growth path that will potentially more than double its operating capacity to 29 EH/s by the end of 2024, positioning the company competitively for the upcoming Bitcoin halving event.
Financially, Riot Platforms demonstrated a solid performance in FY2023, generating $281M in total revenues with a year-over-year increase of 8%. The company’s revenue streams come from diverse sectors, including self-mining operations, engineering, and hosting services. Colonnese emphasizes Riot Platforms’ competitive advantage derived from its unique power strategy, which resulted in $71M in power credits and drove down net power costs to a remarkably low 2.2c/kWh. The analyst also points out the company’s efficient cost management, achieving the lowest direct production costs among public miners. With $214M in adjusted EBITDA and a notable gain on Bitcoin holdings due to new financial accounting standards, Riot Platforms’ strong financial metrics contribute to the rationale behind the Buy rating and a $19 price target.
In another report released on February 21, Roth MKM also reiterated a Buy rating on the stock with a $22.50 price target.
See the top stocks recommended by analysts >>
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.
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.
Read More on RIOT:
- RIOT Earnings: Riot Platforms Ticks Lower on Mixed Q4 Numbers
- Riot Platforms Reports Full Year 2023 Financial Results, Current Operational and Financial Highlights
- Bitcoin (BTC-USD) Stays Above $50,000, Bitcoin Stocks Mixed
- Here’s What You Missed in Crypto This Week
- Riot Platforms price target lowered to $18 from $19 at Needham
