Rosenblatt raises Hive Digital stock price target on HPC growth

Rosenblatt upgraded its price target on Hive Digital Technologies (NASDAQ:HIVE) shares to $6.00 from $5.50, while keeping a Buy rating. The stock is currently trading at $2.82, with targets ranging from $4.50 to $10, indicating substantial upside potential. Hive Digital's market capitalization stands at $770.6 million. The firm noted that Hive Digital's first-quarter 2027 results lagged behind consensus expectations.

However, mining margins improved by 500 basis points due to firmware optimization, and high-performance computing (HPC) revenues beat analyst estimates for the first time in a year. A new $350 million HPC contract is expected to accelerate the company's transition from mining to HPC. The firm's fiscal 2028 estimates indicate significant growth, driven by higher-margin HPC revenues, despite lower Bitcoin price assumptions affecting near-term results.

While execution and funding risks remain high, analysts see significant upside potential in Hive Digital shares as HPC momentum continues to grow. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value. However, investors should note that profitability is not expected this year, and the stock is highly volatile, with a beta of 3.7.