Wall Street brokerage Benchmark has raised its price target on the stock of Hut 8 Corp. (NASDAQ: $HUT) as the company’s pivot to artificial intelligence (A.I.) data centres succeeds.
Benchmark nearly doubled its price target on Hut 8’s stock to $165 U.S. from $85 U.S. previously, citing the success of the company’s transition into an A.I. infrastructure developer
The new price target from Benchmark is 67% higher than where HUT stock currently trades on the Nasdaq (NASDAQ: $NDAQ) exchange. More From Cryptoprowl: In a note to clients, Benchmark said that Hut 8’s shift from Bitcoin (CRYPTO: $BTC) miner to A.I. data centre operator significantly increases its valuation. Analyst Mark Palmer reiterated a buy rating on HUT stock, arguing that the market has yet to fully reflect Hut 8’s rapid expansion and successful execution.
Palmer adds that a buying opportunity in HUT stock has opened up after the share price fell nearly 30% over the past six weeks. Hut 8 has repositioned portions of its power and infrastructure to serve A.I. workloads, betting that contracts with technology companies will generate steadier revenue than crypto mining. Hut 8 has signed two 15-year lease agreements covering 597 megawatts of power capacity at its River Bend, Louisiana and Beacon Point, Texas data centre campuses.