Benchmark has reduced its price target for Canaan (CAN, Financial) from $3 to $2, while maintaining a Buy rating. Despite challenges affecting its bitcoin mining equipment business and proprietary mining activities, the company demonstrated robust results in its first quarter. Revenues surpassed management's expectations, highlighting the strength of its diverse platform. However, uncertainties related to tariffs overshadowed this otherwise solid performance. Additionally, the analyst observes that Canaan's market capitalization is just marginally above the value of its bitcoin and cash reserves.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Canaan Inc (CAN, Financial) is $3.04 with a high estimate of $5.00 and a low estimate of $2.00. The average target implies an upside of 298.85% from the current price of $0.76. More detailed estimate data can be found on the Canaan Inc (CAN) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Canaan Inc's (CAN, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Canaan Inc (CAN, Financial) in one year is $0.66, suggesting a downside of 13.45% from the current price of $0.7626. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Canaan Inc (CAN) Summary page.
CAN Key Business Developments
Release Date: May 20, 2025
- Total Revenue: $82.8 million, exceeding guidance of $75 million, up 136% year over year.
- Mining Revenue: $24 million, up 132% year over year, with 259 Bitcoins mined, a 33% increase year over year.
- Machine Sales Revenue: $58.3 million, up 149% year over year.
- Average Selling Price (ASP): $10.5 per terahertz per second, up 53% from the previous year.
- Gross Profit: $0.6 million, first positive gross profit in two years.
- Operating Expenses: Approximately $38 million, compared to $31 million in the same period last year.
- Cash Balance: Approximately $97 million at the end of Q1.
- Bitcoin Holdings: 1,408 Bitcoins as of March 31, with a fair market value of around $117 million.
- Projected Q2 Revenue: Approximately $100 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Canaan Inc (CAN, Financial) achieved total revenues of USD82.8 million in Q1 2025, exceeding their previous guidance of USD75 million, marking a 136% year-over-year increase.
- The company saw a significant increase in the average selling price per terahertz, rising to USD10.5, representing a 30% growth.
- Canaan Inc (CAN) reported a strong performance in its self-mining business, with 259 Bitcoins mined, up 39% quarter over quarter.
- The company successfully ramped up production and delivery of its A15 series mining machines, contributing to a 62.6% year-over-year increase in total computing power sold.
- Canaan Inc (CAN) maintained a solid mining gross margin of 31% in Q1, supported by competitive electricity costs of 4.2 US cents per kilowatt hour.
Negative Points
- The global bitcoin mining industry faced macroeconomic challenges, including significant tariffs imposed by the US and China, leading to volatility in global markets.
- The US tariffs have led to higher mining costs and greater uncertainty for American miners, significantly suppressing demand for mining machines in the US market.
- Canaan Inc (CAN) decided to withdraw its full-year revenue guidance and mining hash rate deployment targets for the first half of 2025 due to ongoing global political and economic volatility.
- The company faced a fair value loss in cryptocurrency assets of USD16.3 million due to a 12% decline in Bitcoin prices from the previous quarter.
- Canaan Inc (CAN) experienced increased operating expenses, totaling approximately USD38 million, partly due to increased stock costs and R&D expenditures.
