In a report released today, John Todaro from Needham maintained a Buy rating on Cipher Mining (CIFR – Research Report), with a price target of $5.00.
John Todaro has given his Buy rating due to a combination of factors that position Cipher Mining favorably in the market. Todaro’s confidence is significantly bolstered by Cipher Mining’s secured low power costs, which are contracted until 2027 at a competitive rate of 2.7 cents per kWh. This advantageous cost structure, alongside the company’s optimistic outlook on maintaining similar costs for their upcoming 300 MW Black Pearl site, suggests strong potential for operational efficiency and profitability. Additionally, the management’s commitment to scaling operations, as evidenced by the projected near-tripling of the hash rate by the first half of 2025, demonstrates a clear growth trajectory for Cipher Mining.
Furthermore, Todaro’s analysis indicates that Cipher Mining is in a solid financial position, with sufficient cash reserves to fund a substantial proportion of the capital expenditures necessary for its expansion plans. He also notes that the company’s general and administrative expenses are expected to be increasingly offset by revenue growth starting in 2024, as most of their hiring phase is complete. This implies a leaner cost structure going forward. Lastly, Cipher Mining’s strategic approach towards mergers and acquisitions, focusing on quality over quantity, suggests a disciplined growth strategy that could lead to favorable outcomes for the company and its investors.
In another report released on May 9, Compass Point also maintained a Buy rating on the stock with a $7.50 price target.
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Cipher Mining (CIFR) Company Description:
Good Works Acquisition Corp is a blank check company.
Read More on CIFR:
- Cipher Mining to Participate in the 19th Annual Needham Technology, Media, & Consumer Conference
- Cipher Mining price target raised to $6 from $5.50 at Canaccord
- Cipher Mining price target raised to $5.50 from $4.50 at H.C. Wainwright
- Cipher Mining’s Earnings Call Accompanied by Presentation
- Cipher Mining reports Q1 EPS 13c, consensus 1c
