MARA RIOT, GLXY Price Targets Cut At Morgan Stanley On AI Credit Concerns: Analyst Still Sees Over 100% Upside

MARA RIOT Price Targets Cut At Morgan Stanley On AI Credit Concerns: Analyst Still Sees Over 100% Upside

Changes in Credit Market Conditions

Morgan Stanley lowered its price targets on several Bitcoin miners pivoting to artificial intelligence infrastructure, citing changing valuations for pipeline sites as credit-market conditions for the AI trade evolve. The firm cut its price targets on MARA Holdings, Riot Platforms, Galaxy Digital, and Cipher Mining, while raising its targets on Hut 8 and TeraWulf.

Implications for Riot Platforms and Galaxy Digital

Despite the cuts, the firm's revised targets imply more than 100% upside for three of the four stocks whose targets were lowered. Riot Platforms' target was lowered to $35.50 from $43, while Galaxy Digital's target was reduced to $43 from $48. The revised targets imply approximately 110% and 114% upside from Riot Platforms' and Galaxy Digital's current share prices, respectively.

MARA Holdings and Cipher Mining

MARA Holdings stands apart, with its target lowered to $10 from $11. The stock has only about 2% implied upside to the new target, making it the least attractive stock on this measure among the six companies. Cipher Mining's target was trimmed to $51.50 from $54, implying approximately 283% upside from the stock's $13 share price.

Hut 8 and TeraWulf

Morgan Stanley marginally raised its price target on Hut 8 to $275 from $273, an increase of less than 1%, while maintaining an ‘Overweight’ rating. The revised target implies approximately 237% upside from the stock's $81 share price. TeraWulf received a larger increase, with its target raised to $65 from $62.50, a 4% hike. The new target implies roughly 371% upside from the stock's current share price.

Conclusion

The revised targets suggest that Morgan Stanley still sees significant upside potential for Riot Platforms and Galaxy Digital, despite the cuts. Analysts will be watching the companies' future performance closely to see if they can deliver on their revised targets.