Summary:
JPMorgan adjusts bitcoin miner targets following Q4 results.
IREN upgraded to overweight; Cipher Mining downgraded to neutral.
New price target for IREN set at $12, down from $15.
Overall market cap for covered mining stocks down 20% this year.
Current pullback offers an attractive entry point for investors.
JPMorgan Adjusts Bitcoin Miner Price Targets
Wall Street bank JPMorgan (JPM) has made significant adjustments to its price targets for various bitcoin miners following their fourth-quarter results and changes in the bitcoin price and network hashrate.
Key Changes:
- IREN: Upgraded to overweight from neutral, with a new price target set at $12, down from $15. The stock rose 2.7% following the announcement, reaching $7.23.
- Cipher Mining (CIFR): Downgraded to neutral from overweight, with the price target withdrawn. The stock fell 3%, trading at $3.10.
- Riot Platforms (RIOT) and CleanSpark (CLSK): Both maintain overweight ratings, with price targets adjusted to $13 and $12, respectively. Riot's shares dropped 0.5% to $7.82, while CleanSpark gained 0.6% to $8.15.
- MARA Holdings (MARA): Remains at a neutral rating, with the price target reduced from $23 to $18; shares rose 0.5% to $13.14.
Market Dynamics
The adjustments reflect a 19%-29% reduction in price targets due to a 10% decrease in JPMorgan's bitcoin price assumption and an 80% increase in the bank's network hashrate growth estimate. The overall market cap of the five mining stocks covered by JPMorgan has fallen over 20% this year, contrasting with an 11% decline in bitcoin prices.
JPMorgan notes that mining stocks are facing pressure as high-performance computing deals are taking longer to materialize, and mining economics have worsened. Despite this, the bank suggests that the current pullback presents an attractive entry point for investors.
For further insights, check out more on the weakened bitcoin mining economics.
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