Rosenblatt Securities kept its Buy rating and $124 price target on Hut 8 (NASDAQ: HUT) on Wednesday, implying 22.6% upside from the $101.16 share price cited in its report.
The firm maintained its recommendation after Hut 8’s second-quarter revenue rose 81% year over year but missed estimates
Analyst Chris Brendler said the quarter had limited bearing on Hut 8’s valuation because its legacy operations are small compared with $26.6 billion of contracted AI data-center revenue. Hut 8 has signed three 15-year leases covering 949 MW of critical IT capacity at Beacon Point in Texas and River Bend in Louisiana. Hut 8 shares fell 10% after the release, a move Rosenblatt attributed mainly to uncertainty over ERCOT’s delayed Batch Zero transmission-planning study.
The firm said Hut 8’s direct exposure is limited to Beacon Point, a 1 GW campus with 704 MW of contracted critical IT load. Texas Gov. Greg Abbott on Monday directed state regulators to audit data centers moving through the interconnection process.