HUT, CIFR Stocks: Retail Pulls Back But Wall Street Sees Big Upside Ahead

• Keefe Bruyette raised Hut 8’s price target to $89 from $75 while maintaining an Outperform rating.
• Citizens boosted its Hut 8 target to $100 from $65 following a meeting with the company’s CFO.
• Keefe Bruyette also lifted Cipher Mining (CIFR)’s price target to $23 from $20, reiterating its Outperform rating.

Hut 8 (HUT) and Cipher Mining (CIFR) both fell more than 4% in pre-market trading on Tuesday, but Wall Street is getting more bullish on these stocks as the Bitcoin mining space leans into artificial intelligence (AI) and data center infrastructure.

Analysts at Keefe Bruyette raised price targets for HUT and CIFR, citing fundamentals and a strategic shift toward high-performance computing infrastructure.

Keefe Bruyette lifted its price target on Hut 8 to $89 from $75 and kept its ‘Outperform’ rating. The firm also raised its target on Cipher Mining to $23 from $20, keeping its bullish stance on the stock.

Hut 8 received a more aggressive upgrade from Citizens in a separate note, with a price target of $100, up from $65, and an ‘Outperform’ rating. The call followed a meeting with the company's CFO, Sean Glennan, which the firm said strengthened their confidence in Hut 8's transition beyond conventional Bitcoin (BTC) mining. 

HUT’s Google-AI Data Center Pivot Is Driving The Bullishness

HUT’s stock was trading at $72 in midday trade, indicating analysts see an upside of over 23%. On Stocktwits, retail sentiment around HUT dropped to ‘bearish’ from the ‘neutral’ zone, while chatter remained at ‘high’ levels over the past day.

Analysts noted Hut8’s move to supply infrastructure to hyperscalers and other compute-heavy clients, positioning the business to benefit from increased demand tied to AI and data center growth. 

Hut 8 had reportedly said it would raise funds for a 245-megawatt data center in Louisiana by issuing project-level notes, expiring in 2042, through a subsidiary, similar to what Marathon Digital Holdings (MARA) did last year. Both Fitch and S&P gave the deal a preliminary BBB rating, and it was structured more like an infrastructure financing than usual miner debt, with revenue expected to reach $171 million in the first full year of operation and climb to about $547 million by 2041.

CIFR Stock Sees Bullish Upgrade

While CIFR’s stock was trading at $17 in midday trade, indicating an upside of over 35% that analysts expect. On Stocktwits, retail sentiment around CIFR remained in the ‘neutral’ zone, while chatter stayed in ‘neutral’ levels over the past day. On Monday, Morgan Stanley (MS) also raised Cipher Mining’s stock price target to $40.50, an upside of 135% from its current price. 

Read also: SEC’s Atkins Says Crypto Is Still Stuck In ‘1930s-Type’ Era Rules, Calls For Overhaul

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