Summary
- J.P. Morgan and Citigroup said they upgraded their investment ratings for Riot Platforms.
- Both institutions said they pointed to a transition to artificial intelligence (AI) and cloud computing as Riot's potential growth drivers.
- Riot was assessed as likely to achieve differentiated growth compared with competitors through expansion of high-performance computing (HPC) and AI businesses.
On the 26th (local time), according to cryptoasset (cryptocurrency) specialist media CoinDesk, U.S. Bitcoin (BTC) mining company Riot Platforms (Riot Platforms, RIOT) received consecutive upgrades to its investment rating from J.P. Morgan and Citigroup. Both institutions pointed to a transition to artificial intelligence (AI) and cloud computing as potential growth drivers despite pressure on mining profitability.
J.P. Morgan upgraded Riot's rating from 'Neutral' to 'Overweight' and raised the price target from 15 dollars to 19 dollars. Citigroup raised its investment rating to 'Buy' and adjusted the price target up from 13.75 dollars to 24 dollars.
Both institutions assessed that Riot is likely to achieve differentiated growth compared with competitors in the mining industry by expanding into high-performance computing (HPC) and AI-related businesses.
On the day, Riot's share price fell 1.2% to 16.55 dollars, but it held up relatively well amid a sharp decline in peer stocks.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.![[New York Stock Market Briefing] Rebound on bargain hunting in blue chips…Apple jumps 4%](https://media.bloomingbit.io/PROD/news/3710ded9-1248-489c-ae01-8ba047cfb9a2.webp?w=250)
