Wall Street analysts have predicted a significant rally for CAN, the cryptocurrency-related stock of Canaan, a China-based Bitcoin mining equipment manufacturer. The analysts have indicated a “Strong Buy” signal for CAN despite the stock’s narrow following on Wall Street.
The analysts’ prediction follows Bitcoin’s momentum regain and climbing above $60,000, suggesting an accelerated crypto adoption. In addition to the increasing crypto adoption, recent partnership expansions by Canaan also led Wall Street analysts to predict an upside potential for the stock.
Bitcoin surged past the significant $60,000 price level last week following a 5-day consecutive bullish run. TradingView data shows BTC reached $64,000 for the first time since November 2021. Despite this move, CAN shares have lagged – currently trading below $2 per share, down 30% YTD, according to data from Nasdaq.
According to reports, Canaan has continued to secure significant purchase orders from notable partners in the crypto mining space amid ongoing U.S. trade tensions. Analysts believe these deals underscore the company’s strengths in mining machine manufacturing. They also position Canaan to benefit from further adoption of Bitcoin and crypto.
Some of those deals include a follow-on purchase agreement with Cipher Mining and Stronghold Digital, announced by Canaan at the beginning of 2024. These new deals build on existing relationships, involving the combined purchase of over 17,000 of Canaan’s latest A1466 and A1346 Bitcoin mining rig models.
Amid Canaan’s stock price dynamics, Benchmark has reduced its CAN price target after earning to $2.50, down from the former Street-high of $5.50. Nevertheless, the new mean price target of $2.75 implies an expected upside of more than 100% from Friday’s close.
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