Wall Street bank JPMorgan (JPM) has updated its price targets and estimates for bitcoin (BTC) miners following the release of fourth-quarter 2024 results, taking into account fluctuations in the bitcoin price and the overall network hashrate.
IREN (IREN), identified as JPMorgan’s top pick in the sector, has been upgraded to overweight from neutral, although its price target has been cut from $15 to $12. In early trading, shares of IREN rose 2.7% to $7.23.
On the contrary, Cipher Mining (CIFR) has been downgraded to neutral from overweight, with the bank retracting its previous price target of $8. Consequently, the stock dropped 3% to $3.10.
JPMorgan maintained its overweight ratings for Riot Platforms (RIOT) and CleanSpark (CLSK), lowering their respective price targets to $13 and $12. Following the news, Riot experienced a slight decline of 0.5% to $7.82, while CleanSpark saw a modest increase of 0.6% to $8.15.
The bank’s assessment for MARA Holdings (MARA) remained neutral, with a reduction of the price target from $23 to $18. Notably, shares rose 0.5% to $13.14.
The adjustments in price targets for miners ranged from 19% to 29%, reflecting a 10% decrease in the bank’s bitcoin price assumption and an 80% increase in the network hashrate growth estimate. This significant adjustment mirrors the overall strain felt within the mining sector, where the total market capitalization of five major mining stocks tracked by JPMorgan has fallen over 20% year-to-date, in contrast to an 11% decline in bitcoin’s price.
Mining stocks have faced considerable pressure as the timeline for high-performance computing (HPC) agreements have proven longer than anticipated, coupled with deteriorating mining economics, according to the bank’s report.
Despite these challenges, the recent pullback in mining stocks is presented as an attractive entry point for investors, suggesting potential opportunities in a sector that remains volatile.
Read more: Bitcoin Mining Economics Weakened in February: JPMorgan
