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- Jefferies and H.C. Wainwright analysts have slashed their price targets for Argo.
- Argo Blockchain is one of the leading cryptocurrency miners.
- Expectations regarding the funding goal have lowered considering the market conditions.
Experts Cutting Price Targets
Jeffries and H.C. Wainwright researchers cut off their price targets concerning the Argo Blockchain. Reasoning being the disappointing guidance when the organization did not live up to the mark in their quarterly results. Still H.C. Wainwright’s Kevin Dede marked Argo as a buy, but his target from 14 USD to 8 USD against Thursday’s closing value of 4.93 USD. Jefferies researchers Amanda Santillo and Jonathan Peterson too slashed their targets from 20 USD to 13 USD.
Delayed plans to station mining rigs remains the core reason behind the company’s 2023 guidance cut from 5 EH/s to 3.2 EH/s. Peter Wall, CEO of Argo, said that ‘they were partially because of the organization’s decision to customize the machine to expand their efficiency in contrast to the computing power. Kevin Dede pointed out that problems in supply chains have also created barriers in deploying Intel machines.
Argo anticipates its hashrate to reach 4.1 EH/s by Q1 2023. Kevin highlighted that with the latest product, ‘manufacturing milestones are easily jeopardized,’ which translates to more delays might be on the way. Researchers from Jefferies and Kevi Dede took the revenue targets for Argo blockchain down.
Kevin is currently anticipating full-year sales at 84.3 Million USD in contrast to 135.5 Million USD previously. This is possible if Bitcoin maintains a 24,000 USD mark and total hashrate of 220 EH/s. Jefferies researchers slasher the estimate by almost half from 145.6 Million USD to around 76.8 Million USD. The best case scenario to attain the expectations is when the hashrate remains around 220 EH/s and the crowned cryptocurrency maintains 21,400 USD price levels.
Argo also pointed out that lower Intel order helps to keep the options vast by reducing the capital expenditure, wrote Jefferies. The organization stated that they are seeking a raise to around 25 Million USD to 35 Million USD to attain 4.1 EH/s. These expectations have lowered in contrast to the earlier funding goal of 50 Million USD this year.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
