Stifel is bullish on Riot(RIOT.US): Bitcoin miners' underappreciated position

Stifel analyst Bill Papanastasiou initiated coverage of Riot Platforms (RIOT.US) with a "speculative buy" rating on Thursday, saying the market had failed to recognize the clear track record of the company as a leading player in the bitcoin mining space.

In addition to its relatively large mining capacity, the analyst noted that Riot was one of the lowest marginal cost miners among the publicly traded companies.

"(1) low cost power, (2) scale and (3) leading mining efficiency are key unit economics drivers," he said.

Papanastasiou added that Riot had about $1.2 billion in net cash, "which provides flexibility for strategic growth opportunities."

In aggregate, Wall Street analysts have a "strong buy" rating on Riot with an average target price of $17.50, up 63% from current levels.

Papanastasiou also noted that Riot had about $1.2 billion in net cash, "which provides flexibility for strategic growth opportunities."

In aggregate, Wall Street analysts have a "strong buy" rating on Riot with an average target price of $17.50, up 63% from current levels.

As of Thursday's close, Riot was down 5.21% at $10.73, as broader market weakness weighed on investors' confidence in risk assets, including cryptocurrencies.