Analyst Kevin Dede of H.C. Wainwright maintained a Buy rating on BitFuFu (FUFU – Research Report), retaining the price target of $7.00.
Kevin Dede has given his Buy rating due to a combination of factors that highlight BitFuFu’s strong financial performance and strategic initiatives. The company reported significant year-over-year revenue growth, with a 63.1% increase in FY24, driven by substantial gains in both cloud-mining solutions and self-mining revenues. This impressive growth was complemented by a strategic agreement with Bitmain to acquire a large number of miners under favorable payment terms, which supports BitFuFu’s capacity expansion and ability to meet customer demand.
Furthermore, BitFuFu has demonstrated strong customer retention and growth in its user base, with cloud-mining user registrations increasing significantly by the end of FY24. The company’s efforts to optimize costs by relocating mining equipment to lower-cost facilities have also contributed to its positive outlook. Additionally, the launch of new services like BitFuFu Pool and BitFuFu OS indicates the company’s commitment to enhancing its offerings and maintaining a competitive edge in the market. These factors, combined with a bullish outlook on the crypto space, underpin the Buy rating and a target price of $7.
According to TipRanks, Dede is a 3-star analyst with an average return of 2.7% and a 38.71% success rate. Dede covers the Technology sector, focusing on stocks such as Canaan, Exodus Movement, Inc. Class A, and BIT Mining.