Kevin Dede, an analyst from H.C. Wainwright, reiterated the Buy rating on Canaan. The associated price target remains the same with $3.00.
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Kevin Dede’s rating is based on Canaan’s innovative approach and strategic initiatives that position it well in the market. The company has embarked on a new joint venture with Aurora AZ Energy Ltd., which involves converting flare gas from Alberta oil wells into electricity for bitcoin mining. This project, although modest in scale, demonstrates Canaan’s creativity and potential to tap into new markets, particularly through consumer-focused mining products that could rival enterprise offerings in volume and profit margins.
Additionally, Canaan’s recent record order of 50,000 machines from a North American customer, valued at over $120 million, strengthens its fourth-quarter expectations. The company’s ability to create new markets and secure significant deals supports the Buy rating and a price target of $3.00. Despite potential risks such as market volatility and capital requirements, the innovative strategies and market opportunities suggest a promising outlook for Canaan.
Dede covers the Technology sector, focusing on stocks such as Applied Digital Corporation, DeFi Technologies, and Canaan. According to TipRanks, Dede has an average return of 16.5% and a 45.25% success rate on recommended stocks.
In another report released on October 3, Benchmark Co. also reiterated a Buy rating on the stock with a $2.00 price target.