Jefferies Financial Group (NYSE: $JEF) has initiated coverage of Hut 8 (NASDAQ: $HUT) stock with a buy rating and a price target of $156 U.S.
The price target issued by Jefferies is 40% higher than where HUT stock currently trades
Analysts at Jefferies, a Wall Street investment bank, cited Hut 8’s two artificial intelligence (A.I.) data centre leases as key to its bullish outlook on the stock. More From Cryptoprowl: Jefferies said the lease structure is among the most credit-enhanced in the sector. The firm adds that Hut 8 is experienced at managing power generation and digital infrastructure assets.
The analysts add that the River Bend project represents a proof point for the company and should transform Hut 8 from a Bitcoin (CRYPTO: $BTC) miner into a data centre operator. The positive note from Jefferies comes after Hut 8 posted 115% revenue growth over the last 12 months. While Hut 8 reported an earnings miss for this year’s first quarter, there are continued signs of operational growth at the company, said Jefferies in its assessment of the Canadian firm.