With the Bitcoin (BTC-USD) halving event quickly approaching, crypto mining stocks are in full focus. This comes at an excellent time for Riot Platforms (NASDAQ:RIOT), a Bitcoin infrastructure innovator that has spent the past month trending downward. Other companies in the space, such as Marathon Digital Holdings (NASDAQ:MARA), have struggled recently as well. But now, as the year’s biggest crypto event draws near, bullish sentiment toward RIOT stock is shifting. And one investment bank is highly optimistic about Riot’s growth prospects, as evidenced by its recent price target and forecast.
Wall Street Loves RIOT Stock
JPMorgan Chase isn’t the only Wall Street institution to issue a bullish prediction for RIOT stock. But it recently issued a $15 price target, indicating an upside potential of almost 30%. This news has sent shares up 7% today, and the stock’s current trajectory suggests it has even more room to run. Additionally, JPMorgan analyst Reginald Smith upgraded RIOT to an “overweight” rating, up from “neutral.” As Investing.com reports:
“The adjustment comes as Riot Platforms is expected to significantly increase its hashrate, a key performance metric in the cryptocurrency mining industry. The company is on track to boost its hashrate by 9 EH/s in the coming months, with an additional 10 EH/s expected in the second half of 2024. This expansion could elevate the firm’s total hashrate to an impressive 31.5 EH/s by the end of the year.”
These aren’t the only reasons investors are optimistic about Riot’s growth prospects. InvestorPlace contributor Stavros Tousios notes that the company has the lowest production cost in its industry, which could set it up for even further growth as the crypto boom continues to take shape.
As noted, Smith is only the most recent expert to issue a bullish price target for RIOT stock. It currently boasts a strong buy consensus, with eight out of eight analysts rating it as a buy. Recent upgrades include Needham, Bernstein and B.Riley Financial, all of whom see significant upside potential. This trend is likely to continue as momentum for the Bitcoin halving in April 2024 continues to drive the crypto rally, pushing RIOT stock and its peers up in the process.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
