The math makes sense for Bitfarms (Bitfarms Stock Quote, Chart, News, Analysts, Financials TSX:BITF), says ATB Capital analyst Martin Toner.
In a research report to clients March 31, Toner launched coverage of BITF with an “Outperform” rating and one-year target price of $6.50, implying a return of 115.9% at the time of publication.
The analyst says some investors may be looking at the company the wrong way.
“We believe BITF gets penalized for its international assets, given how unfamiliar investors are with those geographies and the perceived instability of Argentina,” he wrote. “There is likely more opportunity to develop low-cost mining assets outside of North America, and we like BITF’s first mover advantage in both Paraguay and Argentina. Given the below average valuation, we believe strong execution in these regions will release significant value creation for shareholders. We appreciate that…
