Riot Blockchain (RIOT) PT Raised to $7.50 at H.C. Wainwright

November 23, 2020 6:34 AM EST
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Price: $32.91 +17.12%

Rating Summary:
    3 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 25 | Down: 32 | New: 109
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H.C. Wainwright analyst Kevin Dede raised the price target on Riot Blockchain (NASDAQ: RIOT) to $7.50 while maintaining a Buy rating.

The analyst commented, "Bitcoin price has risen approximately 83% in roughly ten weeks to $18,700 mid-day Friday, November 20, (days prior to this publication) from the most recent low at roughly the $10,200 level on September 6. The rocket trajectory, we suggest, is reigniting attention on cryptocurrency from both casual onlookers to the sophisticated institutional investing audience as well, even sparking Mike Novogratz, a well-heeled $1.5 trillion fund manager widely seen as highly-crypto knowledgeable, to tout a $60,000 bitcoin price expectation for year-end 2021 last week. Other reputable firms have offered forecasts, including a target as high as $318,000 by December 2021 issued by Citibank [Citigroup Inc. (C; not rated)] last week as well—it appears much of the rationale supporting this specific forecast is tied to technical versus fundamental analysis, but recall the late 2017 spike that had bitcoin almost reaching $20,000 in December that year, capping almost a 20x jump, and certainly illustrating how rapidly bitcoin price can change. As a point of reference at its peak late December, bitcoin's market cap touched the $328B level according to Coin Metrics; now, some three years later, its market cap is in the $354B range, according to our check on coinmarketcap.com. More importantly, the price of bitcoin is directly correlated to the revenue a bitcoin miner can generate, and on that basis, we are increasing our revenue and profitability assumptions for Riot Blockchain while noting that two uncontrollable variables, bitcoin price and the entire network hash rate, remain key determinants of Riot's ultimate performance. Further, the attention now coming to bitcoin we think translates to miner valuations - investors may choose to own a proxy for the asset without having direct exposure and also in understanding miner's performance improves under higher bitcoin scenarios - backed, we offer, by institutional investment interest in bitcoin and greater overall acceptance of bitcoin as a fungible currency."



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Analyst Comments, Analyst PT Change

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Citi, Bitcoin, H.C. Wainwright