JPMorgan, the Wall Street institution, has revised its price targets and projections for bitcoin (BTC) mining companies in light of the fourth-quarter results for 2024 and shifts in the bitcoin market price and network hashrate.
The bank upgraded IREN (IREN), its leading selection in the industry, from neutral to overweight, while lowering its price target from $15 to $12. The stock saw an increase of 2.7%, trading at $7.23 in early exchanges.
Cipher Mining (CIFR) has been downgraded from overweight to neutral, with the bank retracting its previous $8 price target. Consequently, the stock dropped by 3% to $3.10.
Ratings for Riot Platforms (RIOT) and CleanSpark (CLSK) were maintained at overweight, but their price targets were reduced to $13 and $12, respectively. Riot’s shares dipped 0.5% to $7.82, while CleanSpark reported a 0.6% increase, reaching $8.15.
The bank also reaffirmed a neutral rating for MARA Holdings (MARA), cutting the price target to $18 from $23. The shares experienced a slight rise of 0.5%, reaching $13.14.
Target prices for miners were decreased by 19%-29%, reflecting a 10% downward adjustment in the bank’s bitcoin price expectation alongside an 80% increase in its estimate for network hashrate growth.
The overall market capitalization of the five mining stocks tracked by the bank has decreased by over 20% this year, contrasting with an 11% drop in bitcoin’s price, as highlighted in the report.
Mining stocks are facing challenges as delays in high-performance computing (HPC) deals have been longer than anticipated, and the economics of mining have worsened, according to the bank.
This pullback in the mining sector presents a compelling buying opportunity for investors, the report noted.
Read more: Bitcoin Mining Conditions Deteriorated in February