UPDATE: H.C. Wainwright Assumes CleanSpark Inc. (CLSK) at Buy

H.C. Wainwright analyst Mike Colonnese assumes coverage on CleanSpark Inc. (NASDAQ: CLSK) with a Buy rating and a price target of $6.00.

The analyst comments "We are assuming coverage of CLSK with a Buy rating and twelvemonth price target of $6 (nearly 50% upside to current levels). We derive our price target by applying the current peer average P/S multiple of 1.7x to our C2022 revenue estimate of $139.3M. While we can certainly make the argument as to why shares of CLSK should trade at a premium to the group, and a much higher multiple on an absolute basis, given the company’s stellar execution and industry leading operating efficiency (in addition to our long-term bullish views on the price of bitcoin – BTC), we see limited room for multiple expansion for the group over the very near-term given the current market sentiment for BTC and the crypto industry more broadly. Nonetheless, we believe the risk/reward profile for shares of CLSK are very favorable at current levels, with the stock down 57% YTD (vs. BTC down 53% and Russell 2000 -19%) now trading at just 1x C2022E revenue (vs. a 13x avg. P/S multiple in 2021). CLSK ranks in the top five of publicly traded bitcoin miners, yet the company trades at a significant discount to peers on a price-to-active-hash rate basis (likely due to legacy energy business weighing on valuation, which we view as unwarranted. *In Exhibit 20 of our report we include a detailed competitive snapshot of the bitcoin mining industry. Starting the week of August 1, we plan to publish weekly bitcoin mining operating updates inclusive of this data...and more."

For an analyst ratings summary and ratings history on CleanSpark Inc. click here. For more ratings news on CleanSpark Inc. click here.

Shares of CleanSpark Inc. closed at $4.06 yesterday.

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