Freedom Capital Starts Hut 8 Mining Corp. (HUT) at Buy

Freedom Capital analyst Paul Meeks initiates coverage on Hut 8 Mining Corp. (NASDAQ: HUT) with a Buy rating and a price target of $132.00.

The analyst comments "We extend our coverage of neoclouds and AI collocation (co-lo) companies by initiating coverage on Hut 8 (HUT). This firm is one of several that are transitioning their data center (DC) capacity from crypto mining to supporting AI workloads. In this co-lo subgroup we also cover Core Scientific (CORZ, $19.56, BUY, $33 PT) and Applied Digital (APLD, $30.45, BUY, $48 PT). We initiate coverage on HUT with a BUY rating, but we prefer APLD in this industry as we have more confidence in that company given its broader existing contracts (less important) and earlier capacity additions (more important). This entire group has great potential, but HUT is really only starting its journey whereas others are further along, so we think that it is riskier for now. While we initiate coverage on HUT with a BUY and $132 two-year PT, we suggest that given the near-term turbulence in this market investors consider a tight $87 BL, which limits risk to within -10% of our $79 worst-case scenario valuation. We explain our valuation methodology below. It seems to be different from what our sell-side peers use."

For an analyst ratings summary and ratings history on Hut 8 Mining Corp. click here. For more ratings news on Hut 8 Mining Corp. click here.

Shares of Hut 8 Mining Corp. closed at $88.04 yesterday.

You May Also Be Interested In

• Jefferies Starts Rare Earths Americas (REA) at Hold
• Morgan Stanley Resumes Vertex (VRTX) at Overweight
• JPMorgan Reiterates Overweight Rating on NVIDIA (NVDA)