Hut 8 Mining stock rating reiterated at Market Outperform by JMP
Investing.com
Published Jul 10, 2025 05:11AM ET
Investing.com - JMP Securities has reiterated its Market Outperform rating and $25.00 price target on Hut 8 Mining Corp. (NASDAQ:HUT), currently trading at $21.27, following management meetings with investors in New York City earlier this week. According to InvestingPro data, analyst targets range from $18 to $33, with the stock showing strong momentum over the past three months.
The firm expressed increased confidence that Hut 8 will execute its strategy to become a distinguished supplier of high-performance compute data center capacity for hyperscale customers.
JMP believes Hut 8 will leverage its expertise in power procurement to expand its market opportunity beyond the current demand wave driven by AI deployments.
The $25 price target represents approximately 10 times the company's estimated 2027 EBITDA, according to JMP's analysis.
The rating reaffirmation comes as Hut 8 continues its transition from primarily cryptocurrency mining operations toward broader data center and computing infrastructure services.
In other recent news, Hut 8 Corp. reported a significant financial downturn in Q1 2025, with revenue dropping to $21.8 million from $51.7 million the previous year, resulting in a net loss of $134.3 million. Despite these financial challenges, the company has made strategic moves, including infrastructure upgrades and the launch of American Bitcoin, which have driven operational efficiency. Additionally, Hut 8 has secured five-year capacity contracts for its natural gas-fired power plants in Ontario, providing more stable revenue compared to previous short-term agreements. These contracts, with a weighted average capacity payment of approximately CAD $530 per MW-business day, are expected to benefit from Ontario's projected electricity demand growth.
Hut 8's stock has been rated 'Market Outperform' by both JMP Securities and Citizens JMP, with a price target of $25.00, reflecting confidence in the company's growth potential. Analysts at JMP Securities have highlighted the potential of Hut 8's high-performance computing (HPC) business to significantly increase the stock's value. B.Riley has also initiated coverage with a Buy rating and a $25.00 price target, emphasizing Hut 8's diversified business model across power, digital infrastructure, and compute segments. This diversified approach is expected to help the company capitalize on the growth potential in the colocation business and reduce earnings volatility.
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