The stock of Hut 8 (NASDAQ: $HUT) has received a new buy rating on Wall Street.
Lucid Capital Markets has initiated coverage of Hut 8’s stock with a buy rating and a price target of $226 U.S.
The price target from Lucid Capital is 82% higher than where Hut 8’s stock currently trades and comes after the shares have rallied 683% over the past year.
More From Cryptoprowl:
Analysts at Lucid Capital say they like the progress Hut 8 is making in its pivot from Bitcoin (CRYPTO: $BTC) miner to artificial intelligence (A.I.) data centre landlord.
The latest buy rating for HUT stock comes even though the company remains unprofitable and posted negative earnings per share of -$2.90 U.S. over the last year.
Lucid Capital says it like’s Hut 8’s growth trajectory in the fast-moving data centre space, and that it expects the company to deliver on the promise of new A.I. sites in coming years.
The analysts at Lucid Capital characterize the investment case for Hut 8 as centered on execution at this stage.
Hut 8 recently closed a $4.25 billion U.S. bond sale for its Texas data centre project. The bonds carry a 6.129% interest rate and mature in 2042.
The bond sale drew $17 billion U.S. in investor orders, indicative of strong demand.
The funds raised from the bond sale will be used to develop a 352-megawatt data centre in Texas that is being leased to Nvidia (NASDAQ: $NVDA).
HUT stock has gained 143% this year to trade at $124.44 U.S. per share.
