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  /  Cryptocurrency   /  Bitfarms (BITF): HC Wainwright reaffirms Buy Rating with a price target of $7

Bitfarms (BITF): HC Wainwright reaffirms Buy Rating with a price target of $7

HC Wainwright has lowered its price target for Bitfarms Ltd (BITF) but maintains a buy rating for the stock.

A note shared with Invezz on Wednesday said the firm is giving BITF a new price target of $7.00, down from $10, but the buy rating remains.

No change to Buy rating but our price target falls to $7,” the analyst noted, adding that the forecast is premised on Bitfarms’  encouraging FY21 report, current operations and scaling prospects for 2022 and into 2023.

Bitfarms added three more mining sites last quarter, from six to nine and targeted deploying 229MW more across the facilities in 2022. The miner’s hashrate grew 1.5% over the last three months to 3.4 EH/s and the projection is for further growth to  4.0 EH/s by 30 June, 4.2 EH/s by end of September and 6.0 EH/s by end of December.

An opportunity to buy the stock

The analyst says an increase in hashrate and facility expansion has been undermined by a slide in revenue after Bitfarms recorded $40.3 million in revenue for the quarter ending March, down from $59.6 million in the fourth quarter of 2021. The firm released its quarterly results on Monday.

While Q1 2022 revenue was down on that of Q4, 2021, Bitfarms did generate $12 million, or 42% more revenue in the quarter compared to Q1 2021.

For the prior quarter, the 32% decline is attributable to the drop in Bitcoin (BTC) price drop, which has been in a downtrend since hitting an all-time high of $69,000 in November 2021. But despite this, the current market looks like an ideal opportunity to scoop up this miner stock, HC Wainwright’s Kevin Dede said in the note.

As the only public miner with operations across so many sites and in diverse locations, Butfarms looks well poised to extend its revenues. According to HC Wainright, this offers a lot of confidence for future deployments.

Investors should however be aware of risks such as volatility, the impact of regulation, and dilution of operations. All these could impact prices.

Bitfarms (NASDAQ: BITF) stock currently trades at $1.90, down nearly 5.5% on the day. The 52-week range for the stock is $1.68-$9.36. 

On Tuesday, HC Wainright reiterated a Buy Rating for Voyager Digital, with a price target of $16.

The post Bitfarms (BITF): HC Wainwright reaffirms Buy Rating with a price target of $7 appeared first on Invezz.