Key Takeaways
- Canaccord Genuity initiated coverage of CleanSpark this morning with a Buy rating and a $20 price target, 129% above the stock’s last close.
- CleanSpark shares have lost 53% over the past year, as bitcoin’s fall cut into mining revenue and AI data center stocks sold off.
- Canaccord’s target is below the Street’s $23 average, but it implies 8.8x forward sales, more than twice the stock’s five-year average.
- A signed lease on CleanSpark’s Texas capacity would be huge.
CleanSpark (CLSK) has lost 53% over the past year, closing at $8.75 on Oct. 21. On Oct. 22, Canaccord Genuity started coverage with a Buy rating and a $20 target, 129% above that close.
Bitcoin first, then AI
Bitcoin’s fall hit first: mining revenue for the nine months to June fell to $455.6 million from $542.7 million, and marking down its bitcoin cost it $587.2 million.
Then, after a bounce, AI data center stocks sold off, and on Oct. 16, Cantor Fitzgerald cut its target to $19 from $26.
Canaccord is betting on Sandersville
Canaccord called CleanSpark an “attractive standout” against the recent volatility in the broader AI sector, citing its July lease at Sandersville, Georgia: 20 years, triple-net, $6.6 billion of contracted revenue, with a tenant Canaccord identifies as Meta Platforms.
CEO Matt Schultz expects about $330 million of net operating income a year, with the first data hall ready in the fourth quarter of 2027. CleanSpark’s Texas portfolio, up to 885 megawatts, is under exclusivity with the same tenant.
TIKR tracks 14 analysts on CleanSpark. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on CleanSpark, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See CleanSpark’s Analyst Ratings
Does $20 add up?
The analysts’ average target was $23 a year ago, and it’s still $23 even though the stock more than halved…
Canaccord’s $20 sits below that average, near the Street’s $19 low.
The estimates have moved the other way. Analysts now see a fiscal 2027 loss of $1.81 a share, against $0.72 three months ago, and expect revenue to fall to $594 million in fiscal 2026, from $766 million, and not to get back to that level until fiscal 2028…
Fiscal 2028 starts in October 2027, the quarter Sandersville’s first data hall is due.
That lease matters: $330 million a year is more than half the revenue analysts expect for fiscal 2026. At its last close, CleanSpark traded at 3.9x forward sales, a bit above its 3.5x five-year average…
Canaccord’s $20 works out to 8.8x, more than twice that average but below the 11.3x peak of February 2024.
It needs Texas
Of course, waiting until late 2027 isn’t cheap: CleanSpark had $1.8 billion of long-term debt at the end of June, then closed $2.28 billion of senior secured notes through a subsidiary in September.
My take: Canaccord is being overly aggressive here. To reach $20, the market has to price CleanSpark as a data center landlord, and Sandersville alone hasn’t done that.
A signed lease in Texas would. Watch the talks on those 885 megawatts, and CleanSpark’s next report, on the year ended in September.
So what is CleanSpark stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
