Analysts remain highly optimistic about the long-term stock trajectory of Riot Platforms (RIOT). The company is scheduled to release its first-quarter Fiscal 2025 results after the market closes on May 1. On TipRanks, RIOT stock commands a Strong Buy consensus rating based on 10 unanimous Buy ratings.
The bitcoin (BTC-USD) mining company is strategically shifting its focus from a pure-play bitcoin miner to catering the artificial intelligence (AI) and high-performance computing (HPC) sectors. Riot is pursuing deals with AI and HPC companies to lease its mining facilities in Corsicana and Rockdale.
The Street expects RIOT to post an adjusted loss of $0.33 per share, significantly lower than the $0.82 profit per share recorded in the prior year period. Additionally, according to TipRanks Analyst Forecasts page, the consensus for revenue is pegged at $159.62 million, showing a massive 101% jump compared to Q1FY24.
Piper Sandler Cuts Price Target by 22%
Ahead of Riot’s earnings report, Piper Sandler analyst Patrick Moley reiterated his Buy rating on RIOT stock but lowered the price target by 22%, from $23 to $18. The lowered price target still implies an attractive 142.6% upside potential from current levels. The revised price target is based on a valuation of 7 times Riot’s revenue estimates of Fiscal 2026.
Moley particularly cited activist investor D.E. Shaw’s recently undisclosed stake in Riot Platforms as an important development. Meanwhile, hedge fund Starboard Value had also taken a stake in RIOT last year. Following these strategic investments, Riot has undergone a board reshuffle and announced the completion of its much-awaited Corsicana facility.
Finally, the analyst expects the management to throw light on several factors, including findings of the Corsicana feasibility study, potential talks with parties interested in an AI/HPC deal at either facility, guidance on hashrate, and Riot’s bitcoin treasury strategy.
What Is the Price Target for RIOT?
On TipRanks, the average Riot Platforms price target of $16.75 implies an impressive 125.7% upside potential from current levels. Meanwhile, RIOT stock has lost 27.3% so far this year.
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