Crypto mining rig maker Canaan (CAN) is getting into a stronger part of progress, based on Wall Avenue dealer Benchmark, which raised its worth goal on the corporate’s American depositary receipts (ADRs) to $4 from $2 and reiterated its score on the inventory.
The shares have been 5% greater in early buying and selling on Thursday, round $1.79.
Benchmark analyst Mark Palmer stated the corporate’s outlook has brightened now that Nasdaq has confirmed Canaan regained compliance with itemizing guidelines, eradicating a key overhang that had dampened liquidity and investor curiosity.
With that situation resolved, Palmer stated consideration can return to bettering fundamentals, significantly rising demand for its Avalon mining rigs and growth of its bitcoin self-mining operations.
The analyst pointed to rising traction for the Avalon product line, highlighted by Canaan’s largest U.S. order in three years for greater than 50,000 Avalon A15 Professional models as proof that the corporate is regaining market share within the mining {hardware} house.
Palmer additionally famous follow-on purchases of its immersion-optimized A1566I rigs by CleanSpark (CLSK) and referred to as out the compact Avalon Q as a possible future play within the shopper mining section.
On the self-mining aspect, Canaan’s September replace confirmed 9.3 exahashes per second (EH/s) of deployed capability, 92 bitcoins mined for the month and digital asset holdings of about 1,582 BTC and a couple of,830 ETH.
Benchmark stated the corporate’s common energy value of $0.042 per kilowatt hour (kWh) stays among the many best within the trade and may proceed to say no by way of higher vitality aggregation and web site choice.
With the compliance situation behind it, shipments of the 50,000 Avalon A15 Professional rigs anticipated within the fourth quarter, and a rising low-cost self-mining footprint, Benchmark stated Canaan is positioned for additional share worth positive factors.
The latest weak spot within the inventory presents a sexy entry level, the report added.
Learn extra: Canaan Shares Bounce Over 12% because it Lands Largest U.S. Order in 3 Years
