BTIG Slashes Canaan Stock Price Target to $2 Amid Weak Demand
Canaan Inc., a leading manufacturer of bitcoin mining machines, has seen its stock price target lowered to $2.00 by BTIG due to weak demand for its products.
The company reported second-quarter earnings with revenue of approximately $32 million, falling short of the consensus estimate of $65 million and below its previous guidance range of $35 million to $45 million.
Weaker prices continued to weigh on both product sales and mining operations, resulting in a gross profit margin of just 3.45% for the last twelve months.
Canaan sold approximately 2.5 exahash of computing power in the second quarter, a 40% decline from the prior quarter as global demand for mining equipment faces headwinds from weaker Bitcoin prices and a shift by many public miners to high-performance computing and artificial intelligence.