$CIFR

Cipher Digital (CIFR) received conditional approval from ERCOT for 3.2 gigawatts of Texas data center projects, supporting its expansion into AI infrastructure and Bitcoin mining. The approval could reshape its operating mix, but execution risks and near-term earnings pressure remain. Analysts expect significant revenue and earnings growth by 2029, with varying opinions on its potential upside.

UBS initiated coverage on five AI data center colocation stocks with Buy ratings, citing rapid growth potential due to constrained compute supply and favorable power access. The stocks are Hut 8 Mining Corp (HUT), TeraWulf (WULF), Applied Digital (APLD), Core Scientific (CORZ), and Cipher Digital (CIFR). UBS estimates the group has secured 5GW of leased capacity, worth $125 billion, with an additional 12GW in the pipeline.

UBS initiated coverage of five AI data center operators with Buy ratings, citing strong lease signings and tenant quality. The firms include Core Scientific (CORZ), Cipher Mining (CIFR), Applied Digital (APLD), TeraWulf (WULF), and Hut 8 (HUT). UBS estimates significant upside, with TeraWulf leading at 40% and Applied Digital at 33%. Key catalysts include new leases, tenant shifts, and potential REIT conversion.

UBS initiated coverage on colocation data center stocks, citing constrained AI compute supply and strong demand. The bank projects 80% annual EBITDA growth from 2027-2029 and values shares at 12-18x 2028E EBITDA. Companies mentioned include Core Scientific, Cipher Digital, Applied Digital, and Hut 8, with varying risks and opportunities noted.

UBS initiated coverage of Bitcoin miners Cipher Mining (CIFR), TeraWulf (WULF), Hut 8 (HUT), and Core Scientific (CORZ) with 'Buy' ratings, citing their pivot to AI data centers. The firm sees growth potential due to demand for AI infrastructure. All four stocks traded lower amid broader market weakness. UBS set target prices and identified near-term catalysts for each company.

Stifel upgraded Microsoft (MSFT) to Buy with a $575 price target, citing sustained revenue growth. Susquehanna upgraded RXO Inc. (RXO) to Neutral with a $19 target. JPMorgan upgraded Graphic Packaging (GPK) to Overweight with an $11.50 target. RBC upgraded Lakefront Biotherapeutics (LKFT) to Outperform with a $45 target. Guggenheim upgraded Editas Medicine (EDIT) to Buy with a $5 target. Wedbush downgraded Compass Therapeutics (CMPX) to Neutral with a $1 target.

Morgan Stanley raised its price target on Cipher Digital (CIFR) to $54, citing a 15-year, $5.5B lease with Amazon (AMZN) for AI infrastructure. Cipher is pivoting from Bitcoin mining to AI data centers, with Amazon as a key customer. The bull case hinges on long-term cloud contracts, while risks include financing and execution.

Analysts made several calls: UBS initiated CoreWeave as Buy with a $120 PT (~40% upside), KeyBanc initiated Guardian Pharmacy as Overweight, Wolfe raised Amazon's PT to $320, BMO initiated HCA Healthcare as Outperform, Morgan Stanley reiterated SpaceX as Overweight, Wells Fargo initiated Beta Bionics as Overweight with a $28 PT, Oppenheimer initiated Teva as Outperform with a $50 PT, Bernstein initiated Amphenol and TE Connectivity as Outperform, Rosenblatt reiterated Palantir as Buy, UBS…

Morgan Stanley forecasts a 33 GW US data-center power shortfall, despite chip efficiency improvements. The bank expects AI systems to increase electricity demand. Morgan Stanley rates Cipher, Hut 8, Riot, TeraWulf, and Galaxy as Overweight, Applied Digital as Equal-weight, and MARA as Underweight.

Cipher Digital completed its Black Pearl data center early, with Amazon as a tenant. Other projects, like Barber Lake and Stingray, are progressing. Analysts have varying price targets for CIFR, with a consensus of $29.08, suggesting 55% upside. The company's focus shifts from Bitcoin mining to AI infrastructure.