Rosenblatt lowered its price target on Canaan Inc. (NASDAQ:CAN) to $1.30 from $2.25 while maintaining a Buy rating on the stock. The target suggests substantial upside from the current price of $0.42, which sits near its 52-week low of $0.39.
The firm noted that Canaan reported revenue in line with guidance despite declining bitcoin prices and increasing energy costs. Profitability suffered during the period, with the company posting a gross profit margin of just 7.77% in the last twelve months.
Rosenblatt said management is making strategic moves toward becoming a more vertically integrated bitcoin miner. The company is also diversifying into home markets and cutting costs.
The firm lowered its revenue estimates for Canaan. The new 12-month price target reflects the reduced revenue projections.
Canaan manufactures bitcoin mining equipment and operates mining operations. According to fair value analysis, the stock appears undervalued at current levels.
In other recent news, Canaan Inc. reported its first-quarter fiscal 2026 earnings, revealing a revenue of approximately $62.7 million, which fell short of the anticipated $64.68 million. The company also reported an earnings per share (EPS) of -$0.86, significantly missing the forecast of -$0.03. Despite these results, BTIG reiterated a Buy rating for Canaan, maintaining a price target of $3.00.
