Rosenblatt keeps Hut 8 at Buy with $124 target despite ERCOT delay

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Rosenblatt Securities maintained its Buy rating and $124 price target on Hut 8, implying 22.6% upside, after second-quarter revenue rose 81% year over year but missed estimates. Analyst Chris Brendler said the quarter had limited bearing on valuation because legacy operations are small compared with $26.6 billion of contracted AI data-center revenue from three 15-year leases covering 949 megawatts of critical IT capacity at Beacon Point in Texas and River Bend in Louisiana. Shares fell 10% after the release, a move Rosenblatt attributed mainly to uncertainty over ERCOT's delayed Batch Zero transmission-planning study, though the firm said Hut 8's direct exposure is limited to Beacon Point, a 1-gigawatt campus with 704 megawatts of contracted critical IT load. Rosenblatt noted that Beacon Point has not yet secured a full exemption, making its treatment as Base Load rather than Studied Load an important issue, but cited the project's existing interconnection agreement, signed anchor tenant, construction progress, and procurement of long-lead equipment as supportive factors. The firm also pointed to $4.25 billion in senior secured, non-recourse notes raised in June to finance Beacon Point's first six data halls totaling 352 megawatts of critical IT capacity, and said those bonds had recently traded higher, indicating fixed-income investors had not assigned greater credit risk. Rosenblatt lowered its 2026 revenue estimate to $305.7 million from $336.7 million and its 2027 estimate to $547.6 million from $609.4 million, while its 2028 model calls for $1.39 billion of revenue and $1.14 billion of adjusted EBITDA as contracted AI capacity enters service.

Impact on stocks 1

Artificial Intelligence▲ · 1 stocks
Hut 8 Corp. Common Stock
HUT
± MixedRegulationrelevance

ERCOT delay creates uncertainty but limited direct exposure; analyst maintains Buy with $124 target.

Theme Impact 2

Off-coverage companies 1

Rosenblatt Securities Inc.Private± Mixed
relevance

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