Jefferies has initiated coverage on Riot Platforms (NASDAQ:RIOT) with a buy rating and a price target of $37, implying roughly 48% upside from the current $24.92.
Riot Platforms is described as a digital infrastructure developer with large power footprints in Texas and a vertically integrated engineering business for switchgear and power distribution.
The firm highlights Riot's in-house capability giving a supply chain advantage, reducing lead times. Riot signed an initial lease with AMD at Rockdale, but AI remains early-stage.
Investment thesis centers on securing anchor leases at Corsicana and Rockdale, leveraging engineering expertise for AI deployments.
Riot reported Q1 fiscal 2026 revenue of $167.2 million, up 9.4% QoQ, driven by first-time data center revenue of $33.2 million. A collaboration with Terrestrial Energy for nuclear-powered data centers was also announced.
Analyst updates: H.C. Wainwright raised target to $25, Cantor Fitzgerald to $23, Roth/MKM lowered to $38, Compass Point reiterated Buy with $29 target.
