The bullish sentiment was evident as Riot Platform’s stock (RIOT) on Nasdaq surged by 23% to $11.24 as of April 23, according to data from Google Finance. He noted the company’s clear growth trajectory and strong financial position as key factors for his positive outlook.
Furthermore, the firm’s financial robustness is underscored by its liquidity of over $1.2 billion, positioning it well for future expansions. Riot’s current low-cost production strategy and the underperformance of its stock year-to-date were identified by Colonnese as an attractive opportunity for investment.
While Colonnese acknowledges some past challenges in deployment timelines, he remains confident in Riot’s capacity for the effective execution of its expansion plans. Aftahi maintained a Buy rating with a price target of $25.50, expecting the company to achieve an EBITDA of $54.7 million on revenue of $391.5 million in fiscal 2024, with further improvements to $144.5 million EBITDA on $516.4 million revenue in fiscal 2025.
The analyst’s optimism is rooted in Riot’s strong financial structure, highlighted by approximately $1.3 billion in cash and Bitcoin holdings as of the end of March. Furthermore, as per the analyst, the partial energization of Corsicana’s first building is a key factor that could drive major growth in Riot’s hash rate and, consequently, its stock valuation in the near term.