Keefe, Bruyette & Woods Bumps Hut 8 (HUT) Target on Strong Colocation Execution

Hut 8 Corp. (NASDAQ:HUT) is one of the AI Stocks on Market Radar. On December 19, Keefe, Bruyette & Woods analyst Stephen Glagola raised the price target on the stock to $55.00 (from $30.00) while maintaining an “Outperform” rating.

Analysts see HUT as undervalued, pointing to robust colocation deal execution which they said is performing better compared to peer Fluidstack leases. They said improving colocation pricing is a good sign for crypto miners with ready-for-service capacity over 2026-27.

Overall, HUT is well-positioned to capture incremental Google TPU deployments, with over 2GW of potential expansion across its sites and pipelines. However, the stock is undervalued owing to weak AI and Bitcoin sentiment, rather than execution or lease quality concerns.

“HUT is well positioned to capture incremental Google TPU deployments, with 1.0GW net expansion optionality at River Bend (Fluidstack ROFO) and 1.05GW across its broader pipeline with Anthropic. Our Fluidstack lease valuation of $4.49B–$7.12B (or $41.55–$65.88 per share at 5%-7% cap rates) exceeds current market cap, reflecting negative AI/BTC sentiment rather than execution or lease quality concerns, in our view. We raise our price target to $55, reflecting a 6% cap rate on the Fluidstack lease, 25% haircut to ABTC stake, and net debt. Reiterate Outperform.”

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