Riot’s Price jumps 23% on analysts’ bullish forecast

Riot’s shares surged by more than 20% fueled by optimistic evaluations from analysts who foresee substantial growth in the company’s financial performance.

Anticipation surrounding Riot‘s financial performance, particularly in the wake of recent analyst predictions, has fueled significant investor interest. The bullish sentiment was evident as Riot Platform’s stock (RIOT) on Nasdaq surged by 23% to $11.24 as of April 23, according to data from Google Finance.

On April 22, Analyst Mike Colonnese from H.C. Wainwright reaffirmed a Buy rating on Riot Platforms and set a target price of $20.00. He noted the company’s clear growth trajectory and strong financial position as key factors for his positive outlook.

Colonnese highlighted Riot’s plans to significantly enhance its hash rate from 12.4 EH/s to 31.5 EH/s by the end of 2024 and to 41 EH/s by the end of 2025. This strategic increase in capacity is supported by the operational commencement of the first 400 MW substation at the new Corsicana facility in Texas.

Furthermore, the firm’s financial robustness is underscored by its liquidity of over $1.2 billion, positioning it well for future expansions.

Riot’s current low-cost production strategy and the underperformance of its stock year-to-date were identified by Colonnese as an attractive opportunity for investment. He also mentioned the reduced shipment times for necessary mining rigs due to the manufacturing presence of MicroBT in Pennsylvania, which aids Riot’s near-term expansion strategies.

While Colonnese acknowledges some past challenges in deployment timelines, he remains confident in Riot’s capacity for the effective execution of its expansion plans.