JPMorgan Calls CIFR Stock ‘Substantially Undervalued’ Amid Fresh Price Target Cuts

• Northland, Wells Fargo and Cantor Fitzgerald also lowered their targets after the third-quarter results.
• Northland made the deepest cut, to $14 from $27.50, but its new target still implies about 104% upside from Monday’s close of $6.86.
• Northland linked additional spending at Barber Lake campus to the acceleration of the commercialization process in its first lease and the relatively aggressive build-cost guidance before the design process had advanced sufficiently.

JPMorgan said Cipher Digital (CIFR) shares were "substantially undervalued," even as it joined Northland, Wells Fargo and Cantor Fitzgerald in lowering its price target after the data center developer's third-quarter results.

CIFR stock, meanwhile, gained in morning trade amid a broader sector rebound in AI infrastructure stocks after recent pressure. 

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JPMorgan analyst Richard Choe maintained an 'Overweight' rating on the stock, calling it "substantially undervalued" in a research note, according to TheFly. The analyst added that Cipher is enforcing the deals, that the company has fully funded all of its development, and that it would be ready by mid 2027. However, the firm lowered its price target on CIFR stock to $18 from $22. 

Northland Flags Barber Lake Costs

Northland also cut its price target on the stock to $14 from $27.50, the largest cut among the four firms. The firm kept an ‘Outperform’ rating on the stock. According to the analyst, additional spending at Barber Lake was largely driven by the acceleration of the commercialization process in its first lease and the relatively aggressive build-cost guidance before the design process had advanced sufficiently.

CIFR stock edged up over 11% in morning trade, reversing the previous day's losses. On Stocktwits, retail sentiment around CIFR remained in the ‘bullish’ zone, as chatter improved to ‘high’ from ‘normal’ levels over the past day. 

Other crypto equities and Bitcoin mining stocks such as Hut8 (HUT), Bit Digital (BTBT) also saw double digit gains. 

Wells Fargo, Cantor Stay Bullish

Wells Fargo maintained an ‘Overweight’ rating on the stock. The quarter was relatively free of surprises as the company prepares to open three campuses, it said. Cipher is also trying to mitigate risks from its upcoming leases for a pipeline of about 6 gigawatts, it said. The risk/reward ratio of the stock remains attractive, Wells Fargo said. The firm cut its price target on the CIFR stock to $15 from $25. 

Cantor analyst Brett Knoblauch also kept an ‘Overweight’ rating. The results are pretty much the same as Cipher reallocated power capacity from Bitcoin mining to artificial intelligence, said Knoblauch. Cantor, however, cut the stock’s price target to $15 from $19. 

Both Cantor and Wells Fargo set price targets of $15, implying about 119% upside from Monday's close of $6.86. Based on Monday's close, Northland's new target still implies about 104% upside, and JPMorgan's target implies about 162%.

Revenue Falls Short Of Estimates: AI Leases Drive Outlook

On Monday, Cipher reported third-quarter revenue of $26.7 million, down from $71.7 million a year earlier, the company said. According to Koyfin, analysts expected revenue to be around $37.5 million. 

The company posted a diluted loss of $0.22 per share, compared with the Koyfin estimate of $0.26. 

The quarter included Cipher's first revenue from high-performance computing, or HPC, the large-scale computing used to train and run AI models. That revenue began after rent at its Black Pearl campus started, the company said.

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