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Bitcoin Miner Marathon Digital Targets Trimmed at Cowen

The bank raised its share price target to $9, but that is still below the stock’s current level of about $14.

Investment bank Cowen has slashed revenue, adjusted EBITDA and mining profit expectations for bitcoin miner Marathon Digital Holdings (MARA) following sluggish second-quarter results and warnings about its ambitious hash target. company.

While Marathon delivered disappointing results in the second quarter as thousands of its mining rigs stood still due to storms and power supply delays, the company announced storage transactions. will help them achieve their hashrate goal of 23.3 exahash per second (EH/s) by mid-2023.

However, these transactions come with execution risk given Marathon’s reliance on third-party vendors and lack of control over the infrastructure, Cowen analysts Stephen Glagola and George Kuhle said in a statement. Note to customers. They note that one of those third parties is Applied Blockchain (APLD), a “relative newcomer to the bitcoin mining hosting business with a limited history of operations.”

Reflecting that disappointing Q2 result, the Cowen team lowered its 2022 revenue estimate for Marathon to $150 million from $204 million, now below the consensus forecast of $189 million. Cowen also lowered expectations for adjusted EBITDA from $86 million to $39 million and mining profit to $91 million with a 61% margin, down from $132 million and a 64.7% margin.

Cowen continued to rank Marathon at Market Perform, but raised his price target to $9 from $7 after the stock’s price nearly tripled in the past seven weeks to its current $14 per share.

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