Hut 8 (HUT) Surges 11.5% on Upbeat Outlook, Analyst Hikes PT by 157%

Hut 8 Corp. (NASDAQ:HUT) is one of the 10 Stocks to Watch Today.

Hut 8 saw its share prices jump by 11.55 percent on Monday to close at $52.94 apiece, as investors took path from an investment firm’s highly optimistic outlook for the stock, with a price target representing a 157 percent upside potential.

In a market note, Arete Research issued a “buy” recommendation on shares of Hut 8 Corp. (NASDAQ:HUT), alongside a price target of $136 apiece, reflecting its optimism for the latter’s River Bend data center, which has the potential to generate $17.7 billion in leasing revenues from Google alone.

In December last year, Hut 8 Corp. (NASDAQ:HUT) inked a 15-year leasing deal with Google, which has the potential to generate up to $17.7 billion in revenues if and when the latter exercises all its renewal options.

The base term covers 245 MW of IT capacity for Fluidstack, for $7.7 billion. It also gives the latter the right of first offer for 1,000 MW of capacity in the campus’ future expansion.

The initial data hall is expected to come online in the second quarter of 2027, with additional data halls scheduled in the remainder of next year.

In relation to the lease agreement, Arete Research also underscored Hut 8 Corp.’s (NASDAQ:HUT) low cost of debt for its data center operations.

However, it cautioned against the listed firm’s Bitcoin exposure, having owned 61 percent of American Bitcoin Corp. and maintained its commitment to mining Bitcoins.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. Follow Insider Monkey on Google News.