Benchmark Doubles Canaan Price Target to $4 as Mining Recovery Gains Momentum
Canaan (CAN) is showing renewed signs of strength, with Wall Street broker Benchmark doubling its price target on the crypto mining hardware manufacturer’s American depositary receipts (ADRs) to $4 from $2, while maintaining a Buy rating.
The shares rose around 5% to $1.79 in early Thursday trading following the upgrade.
Benchmark analyst Mark Palmer said Canaan’s outlook has improved considerably after the company regained compliance with Nasdaq’s listing requirements, removing a major obstacle that had weighed on investor confidence and liquidity.
With the compliance issue resolved, Palmer expects investor focus to shift back to the company’s expanding fundamentals — notably, rising demand for its Avalon mining rigs and the steady growth of its self-mining operations.
Palmer pointed to Canaan’s largest U.S. order in three years — a deal for more than 50,000 Avalon A15 Pro units — as a sign that the company is regaining market traction in the mining hardware space. He also highlighted repeat purchases of the A1566I immersion rigs by CleanSpark (CLSK) and described the upcoming Avalon Q model as a potential catalyst in the consumer mining segment.
On the operational front, Canaan’s September report showed 9.3 exahashes per second (EH/s) of self-mining capacity, with 92 BTC mined during the month. The company also reported digital asset holdings of roughly 1,582 BTC and 2,830 ETH.
Benchmark noted that Canaan’s average power cost of $0.042 per kilowatt hour (kWh) remains among the lowest in the industry, and is expected to decline further through strategic site selection and improved energy aggregation.
With new Avalon shipments set to roll out in Q4, combined with a growing, low-cost self-mining operation, Benchmark believes Canaan is well-positioned for continued upside.
“The recent pullback in the stock offers investors an attractive entry point,” Palmer added, emphasizing that Canaan’s turnaround story is gaining real momentum.
