At the end of February, the company reported that it mined 289 bitcoin in the month and held 6,115 bitcoin on its balance sheet. The company also acquired a Canada-based wireless connectivity company that it plans to use to offer scalable cloud services in direct competition with Microsoft, Amazon and Google. Hut 8 plans to use inactive cloud space to offer infrastructure for Web3 and blockchain-based gaming. The company is set to report earnings early Thursday morning.

Hut 8 has not attracted much attention from analysts, but the four that cover it are solid bulls, with three giving the stock a Buy rating and the other a Strong Buy nod. At a share price of around $4.70, the upside potential based on a median price target of $18.50 is nearly 294%. Based on a high price target of $20, the upside potential on the stock is about 325%.

Fourth-quarter revenue is forecast at $49.45 million, up 24.4% sequentially and 280% higher year over year. Adjusted EPS are forecast at $0.17, up 43.6% sequentially. Additional quarterly data is not available. For the full 2021 fiscal year, EPS are forecast at $0.42 on sales of $139.16 million, up 335%.

Shares trade at 10.8 times expected 2021 EPS, 3.8 times estimated 2022 earnings of $1.23 and 3.3 times estimated 2024 earnings of $1.41 per share. The stock’s 52-week range is $3.15 to $16.57. Hut 8 does not pay a dividend. Total shareholder return for the past year is negative 47.6%.

Li-Cycle

Lithium-ion battery recycler Li-Cycle Holdings Corp. (NYSE: LICY) came public through a SPAC merger that was completed in mid-August of last year. Since then, the shares have declined by more than 23%. The company’s hub-and-spoke design is expanding with new spokes in Arizona, Ohio, Norway and Germany and a hub facility in Rochester, New York, that is expected to be completed next year. Li-Cycle is expected to share its results Thursday morning.

Of eight brokerages covering the stock, six give it a Buy or Strong Buy rating and the other two have a Hold rating. At a share price of around $8.00, the upside potential based on a median price target of $13.50 is nearly 69%. Based on a high price target of $18, the upside potential on the stock is about 125%.

First-quarter revenue is forecast at $7.7 million, up 54% sequentially. Analysts are looking for an adjusted per-share loss of $0.07, better than the prior quarter loss of $0.09 per share. For full fiscal 2022 ending in October, the adjusted loss per share is forecast at $0.28 on sales of $38.90 million, up more than 425%.

Shares trade at 17.4 times estimated 2024 EPS of $0.46. The company is also forecast to post a loss per share of $0.10 in 2023. The stock’s post-IPO range is $3.00 to $14.28. Li-Cycle does not pay a dividend. Total shareholder return for the past year is negative 31.4%.

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