Add as a preferred source on GoogleJefferies Upgrades Riot Platforms and Raises Target to $28
The new target is 59% above Monday’s close. The 15-year Corsicana lease is scheduled to begin in September 2027.
Jefferies upgraded Riot Platforms (RIOT) to Buy from Hold and raised its price target to $28 from $13, citing the economics of the company’s powered-land lease at Corsicana, Texas.
The new target is 59% above Monday’s closing price. Riot shares have gained 39% year to date, and all 23 analysts covering the company had Buy or Strong Buy ratings.
Jefferies estimates the lease will produce an average annual yield of 33%. It puts capital spending at $6 million per IT megawatt, compared with $11 million to $15 million for a typical data-center build.
“The powered land lease lets RIOT monetize the site with less execution and financing risk,” Jefferies analyst Jonathan Petersen said. Petersen said Riot could fund the project with project debt or through tenant funding in exchange for a rent credit. He also said the tenant’s modular solution paired with ready power could improve speed to market and shift meaningful execution risk to the tenant.
The powered-land lease is scheduled to begin in September 2027.