Cango Inc. receives a buy rating by Greenridge Capital thanks to its power generation pivot to capture AI and crypto mining opportunities.
Greenridge Capital has given Canfo a buy rating and US$4.00 target price after assessing the firm.
According to the Greenridge Capital report, Cango is trading below the value of its assets, pointing out ongoing cost reduction measures and Cango’s ability to capitalise on future opportunities with its strong financial position. The report believes that the firm is mispriced and overlooked by the market, due to its Bitcoin mining status and asset-light model.
Cango plans to diversify its revenue and enhance profitability by controlling its own power supply, which is a key strategic step for future AI data centre or Bitcoin mining operations. This is also highlighted in Greenridge Capital’s report, pointing out the expansion into flexible energy and data infrastructure projects with higher margin opportunities and cash generation potential.
The expansion will be supported by two pilot projects that are underway. The first is a pilot solar generation and storage project in Oman, and the other is a 150MW power generation facility in Indonesia, which could potentially be expanded to 300MW in future.
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