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On Thursday, JMP Securities analysts, led by Greg Miller, reaffirmed their Market Outperform rating on Hut 8 Mining Corp. (NASDAQ:HUT), maintaining a $25.00 price target. The analysts’ assessment is rooted in the company’s current financials and future earnings potential. According to InvestingPro data, Hut 8 Mining’s current market capitalization stands at $1.71 billion, with total debt of $354.86 million and trailing twelve-month EBITDA of $106.78 million. The stock is trading at an estimated 9.0x and 6.0x its projected 2026 and 2027 EBITDA multiples, respectively.
The firm’s price target of $25.00 is based on an application of 14.0x and 10.0x multiples to the anticipated 2026 and 2027 EBITDA. Hut 8 Mining’s shares are currently trading at $16.36, with analyst targets ranging from $17.50 to $33.00 according to InvestingPro. JMP Securities’ analysts suggest that the company’s high-performance computing (HPC) business has the potential to significantly increase the stock’s value. If Hut 8 Mining were to sell out of capacity, the stock price could hypothetically reach approximately $74.00 per share for the HPC segment alone, a scenario envisioned to play out over the long term.
The analysts’ optimistic outlook for Hut 8 Mining is tied to its ability to capitalize on its HPC business, which could drive substantial growth in the company’s stock price. The long-term potential of the HPC business to reach a hypothetical stock price of $74.00 per share underscores the analysts’ positive stance on the stock’s future performance.
Hut 8 Mining’s current market position and debt levels, in conjunction with the estimated multiples on future earnings, have informed JMP Securities’ continued endorsement of a Market Outperform rating. While the $25.00 price target suggests significant upside potential, InvestingPro analysis indicates the stock is currently trading above its Fair Value, with a notable 66% return over the past year despite a 37% decline in the last six months. InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report that provides deep-dive analysis of HUT’s financial health and growth prospects.
Investors and market watchers will likely monitor Hut 8 Mining’s progress towards achieving the performance levels outlined by JMP Securities, as well as any developments in the HPC sector that could influence the stock’s future valuation.
In other recent news, Hut 8 Mining Corp reported a significant financial downturn for Q1 2025, with revenue falling to $21.8 million from $51.7 million in the previous year and a net loss of $134.3 million. Despite these challenges, the company is focusing on strategic expansion, including the launch of American Bitcoin and infrastructure upgrades. Analysts from Citizens JMP initiated coverage on Hut 8 with a ’Market Outperform’ rating, projecting potential growth in the company’s power capacity and high-margin revenue streams, which could add incremental value for shareholders. B. Riley also set a ’Buy’ rating for Hut 8, citing the company’s diversified business model across power, digital infrastructure, and compute as a strength. The firm’s analysts expect Hut 8’s growth initiatives to support this diversified approach over the next 12 months. Hut 8’s strategic shift towards a multifaceted power provider for digital services is believed to position it favorably within the data center industry. Recent developments reflect confidence in Hut 8’s long-term value creation and strategic direction.
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