Argo Blockchain plc (ARBK:NSD) Analysts rate as a Strong Buy, $15.75 target

STA Research
by: STA Research
Argo Blockchain plc stock

Based on the Argo Blockchain plc stock forecasts from 5 analysts, the average analyst target price for Argo Blockchain plc is USD 15.75 over the next 12 months. Argo Blockchain plc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Argo Blockchain plc is Slightly Bullish, which is based on 6 positive signals and 5 negative signals. At the last closing, Argo Blockchain plc’s stock price was USD 5.86. Argo Blockchain plc stock price has changed by -0.57% over the past week, -1.50% over the past month and +0.00% over the last year.

Stifel Nicolaus Research lowered the target forecast on the stock to $7 from $11, and maintained the Hold rating.

Argo Blockchain plc and its subsidiaries are involved in the mining of bitcoin and other cryptocurrencies all around the world. It mines cryptographic algorithms using custom-built machines. The company was previously known as GoSun Blockchain Limited, but in December 2017, it changed its name to Argo Blockchain plc. Argo Blockchain plc was founded in 2017 and has its headquarters in London, England. 16 Great Queen Street, WC2B 5DG, London, United Kingdom

 

What we like:

Underpriced compared to book value

The stock is trading low compared to its peers on a price-to-book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior capital utilization

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

Superior return on assets

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

Positive free cash flow

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

Superior Earnings Growth

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

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

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.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Negative cash flow

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

Overpriced on a 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 buying.

 

 

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