This Stock That's Up Over 8X In A Year Is Not Too Expensive Yet, According To One Analyst

• Citizens said Keel is capitalizing on a broader industry shift in which former bitcoin mining operators are repurposing existing power infrastructure to serve artificial intelligence and high-performance computing workloads.
• The firm noted that Keel's access to power capacity positions it to benefit from growing demand from hyperscale customers.
• Citizens believes Keel is benefiting from the same market dynamics that have driven substantial outperformance among many of its peers over the past year.

Shares of Keel Infrastructure Corp. (KEEL) are up more than 177% year-to-date, and Wall Street thinks the surge in the company’s shares is not done yet.

According to TheFly, analysts at Citizens initiated coverage of Keel Infrastructure with an ‘Outperform’ rating and a price target of $10, implying an upside potential of 46% from current levels.

Keel shares were up more than 4% in Wednesday’s pre-market trade after hitting a 52-week high on Tuesday.

Why Citizens Is Bullish On KEEL

Citizens said Keel is capitalizing on a broader industry shift in which former bitcoin mining operators are repurposing existing power infrastructure to serve artificial intelligence and high-performance computing workloads.

The firm noted that Keel's access to power capacity positions it to benefit from growing demand from hyperscale customers, which include some of the world's largest cloud and AI companies. As AI adoption accelerates, demand for data center capacity and reliable power has increased sharply, making existing power assets more valuable, Citizens said.

The firm added that economic terms for providers of high-performance computing (HPC) infrastructure have improved significantly in recent years as customers compete to secure capacity.

Citizens believes Keel is benefiting from the same market dynamics that have driven substantial outperformance among many of its peers over the past year, with demand for powered capacity continuing to rise as AI infrastructure buildouts expand.

KEEL Bolsters Balance Sheet With Convertible Notes Offering

Earlier this month, Keel closed a $458 million offering of 1.25% convertible senior notes due 2032, generating approximately $445.4 million in net proceeds.

The company said existing liquidity is already sufficient to advance its Panther Creek, Sharon and Moses Lake developments through the leasing phase. As a result, it expects the new capital to provide additional financial flexibility rather than fund near-term liquidity needs, allowing the company to pursue value-enhancing investments across its portfolio of digital infrastructure projects.

Keel said the remaining proceeds will be used for general corporate purposes, including funding deposits for long-lead equipment and providing collateral for letters of credit tied to expanding or accelerating data center development projects.

What Retail Traders Think Of KEEL Stock

Retail sentiment on Stocktwits around Keel trended in the ‘bullish’ territory, with message volumes at ‘high’ levels at the time of writing.

KEEL stock is up 177% year-to-date and 784% over the past year. The Schwab U.S. Small-Cap ETF (SCHA) is up 40% over the past 12 months, while the iShares Morningstar Small-Cap Value ETF (ISCV) is up 26%.

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