JonesTrading keeps KEEL at buy, $7.50 target as HPC leases slip into 2027
JonesTrading reaffirmed its Buy rating and $7.50 target on KEEL (NASDAQ: KEEL), citing 257% upside potential. Q3 revenue dropped 59% YoY to $27.6M, all from bitcoin mining. HPC leases delayed to 2027 due to regulatory changes. Analyst Kevin Dede maintains 2027 revenue estimate at $65.9M, excluding lease revenue. Target based on stock's trading range and secured power capacity.
How this was made
The 30-second read
Why it matters
The analyst’s unchanged buy rating contrasts with a sharp revenue decline, suggesting a belief in long‑term value despite short‑term setbacks.
Market read
KEEL’s Q3 miss and lease delays could pressure the stock, while the broader crypto‑mining sector watches Pennsylvania power policy.
What to watch
Potential for future debt‑free financing or alternative power contracts not yet disclosed.
Background
KEEL, formerly Bitfarms, is a Bitcoin mining operator reliant on high‑performance computing (HPC) leases.
Ticker impact
Analyst JonesTrading kept a Buy rating and $7.50 target after KEEL reported Q3 revenue down 59% and no HPC lease revenue.
downside pressure as the market prices in weaker revenue and delayed lease pipeline
The note highlights a 59% revenue drop and loss of expected lease deals, which directly hurts earnings outlook.
Market effects
Bitcoin mining sector faces tighter power constraints in Pennsylvania, potentially affecting peers.
Pennsylvania power policy may delay HPC projects regionally.
Limited to the niche crypto‑mining hardware market.
Counterpoint
If KEEL can secure the 2027 power delivery, the long‑term upside may still justify the target.
Key entities
- AnalystKevin Dede
JonesTrading analyst authoring the note.
- CFOJonathan Mir
KEEL CFO commenting on financing needs.
