Analysts rate Hut 8 Mining Corp(HUT:TSX) with a Strong Buy rating and a target price of $6.50

STA Research
by: STA Research
Hut 8 Mining Corp

Analysts rate Hut 8 Mining Corp with a consensus Strong Buy rating and a 12-month average target price of $6.50 per share.

Based on the Hut 8 Mining Corp stock forecasts from 3 analysts, the average analyst target price for Hut 8 Mining Corp is CAD 6.50 over the next 12 months. Hut 8 Mining Corp’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Hut 8 Mining Corp is Neutral, which is based on 5 positive signals and 5 negative signals. At the last closing, Hut 8 Mining Corp’s stock price was CAD 3.10Hut 8 Mining Corp’s stock price has changed by +21.09% over the past week, +78.16% over the past month and -48.93% over the last year.

What we like:

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What we don’t like:

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector.

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

Leave a Reply

Your email address will not be published.