Hut 8 Mining p(US:HUT) Yahoo Finance·2025-12-27 07:22Core Viewpoint - Hut 8 Corp. is considered undervalued despite its strong execution in colocation deals and potential for growth in AI and crypto sectors, with a price target raised to $55.00 from $30.00 while maintaining an "Outperform" rating [1][3]. Group 1: Company Positioning - Hut 8 is well-positioned to capture incremental Google TPU deployments, with over 2GW of potential expansion across its sites and pipelines [2]. - The company has 1.0GW net expansion optionality at River Bend and 1.05GW across its broader pipeline with Anthropic [3]. Group 2: Market Sentiment and Valuation - The stock is currently undervalued due to weak sentiment in AI and Bitcoin markets, rather than concerns about execution or lease quality [2][3]. - The Fluidstack lease valuation ranges from $4.49 billion to $7.12 billion, translating to a share price of $41.55 to $65.88 at 5%-7% cap rates, which exceeds the current market cap [3]. Group 3: Analyst Insights - Analysts highlight that improving colocation pricing is a positive indicator for crypto miners with ready-for-service capacity over 2026-27 [1]. - The price target increase reflects a 6% cap rate on the Fluidstack lease, a 25% haircut to the ABTC stake, and net debt considerations [3].