Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 7 Jun, 24 | CIFR | Speculative Buy | USD 4.26 | USD 4.9 | USD 5.6 | 13 days | 31.5% |
Data Powered by EOD Historical Data (“EODHD”).
Cipher Mining Inc., together with its subsidiaries, engages in the development and operation of industrial scale bitcoin mining data centers in the United States. The company was incorporated in 2020 and is based in New York, New York. Cipher Mining Inc. operates as a subsidiary of Bitfury Holding B.V.
Increased Revenues: Post halving, the revenues increased to USD 48.14 mn in Q1FY24 from USD 21.90 mn in Q1FY23.
Higher Returns to Shareholders: ROE expanded to 7.3% in Q1FY24 vs Industry Median of 0.7%.
Contraction in Margins: Gross margins at 69.2% in Q1FY24 vs. the Industry Median of 78.8%
Operating Inefficiency: Asset Turnover at 0.08x in Q1FY24 vs. Industry Median of 0.13x.
Government Regulations, Change in Consumer Interest, Fluctuations in Transaction Costs, Taxation, etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 4.26 | 3.9 | 4.9 | 5.6 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Technical Observation (on the daily chart):
CIFR's stock price has been consolidating within a narrow range, displaying resilience at its rising trendline and gradually drifting upward. This developing trend suggests a potential opportunity for an upward movement in the near term. The stock is also maintaining its position above its 21-day and 50-day simple moving averages (SMAs), which serves as a strong support level and could provide a floor for the price. Additionally, the 14-period Relative Strength Index (RSI) is currently above its midpoint, further reinforcing the positive bias.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a 'Speculative Buy' rating has been given to Cipher Mining Inc. (NASDAQ: CIFR) at its current market price of USD 4.26 as of Jun 7, 2024 (7:23 am PDT).
Data Powered by EOD Historical Data (“EODHD”).
Sector: Financial Services Industry: Capital Markets
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| CIFR Cipher Mining Inc |
-0.18 4.55% | 3.78 | 80.00 | 21.23 | 8.94 | 2.31 | 8.44 | 26.95 |
| MS Morgan Stanley |
1.45 1.34% | 108.94 | 16.50 | 13.76 | 2.80 | 1.65 | ||
| SCHW Charles Schwab Corp |
1.41 2.17% | 66.31 | 22.86 | 17.39 | 6.14 | 4.28 | ||
| GS Goldman Sachs Group Inc |
7.52 1.51% | 504.09 | 18.44 | 10.60 | 2.83 | 1.16 | ||
| IBKR Interactive Brokers Group Inc |
1.12 0.76% | 148.71 | 21.95 | 17.48 | 10.41 | 3.30 | 1.04 | 1.22 |
Data Powered by EOD Historical Data (“EODHD”).
**For simplicity purpose, certain recommendations are indicated as Buy in the overview table of the report, and depending on the risk factors may be categorised as Speculative Buy in particular.
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Past performance is neither an indicator nor a guarantee of future performance.
The reference date for all price data, currency, technical indicators, support, and resistance levels is of Jun 7, 2024 (7:23 am PDT). The reference data in this report has been partly sourced from REFINITIV.
Abbreviations
CMP: Current Market Price
SMA: Simple Moving Average
RSI: Relative Strength Index
USD: United States dollar
Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.
Disclaimer:
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Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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