Cipher Digital Inc. (NASDAQ:CIFR) Just Reported And Analysts Have Been Lifting Their Price Targets

As you might know, Cipher Digital Inc. (NASDAQ:CIFR) last week released its latest first-quarter, and things did not turn out so great for shareholders. The numbers were fairly weak, with revenue of US$35m missing analyst predictions by 4.5%, and (statutory) losses of US$0.28 per share being slightly larger than what the analysts had expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from Cipher Digital's eleven analysts is for revenues of US$232.1m in 2026. This would reflect a meaningful 11% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 56% to US$0.96. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$235.2m and losses of US$0.97 per share in 2026.

Check out our latest analysis for Cipher Digital

The average price target fell 7.4% to US$30.07, with the ongoing losses seemingly a concern for the analysts, despite the lack of real change to the earnings forecasts. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Cipher Digital, with the most bullish analyst valuing it at US$53.00 and the most bearish at US$22.00 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Cipher Digital's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 14% growth on an annualised basis. This is compared to a historical growth rate of 39% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 17% annually. Factoring in the forecast slowdown in growth, it looks like Cipher Digital is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Cipher Digital going out to 2028, and you can see them free on our platform here..

Even so, be aware that Cipher Digital is showing 3 warning signs in our investment analysis , and 1 of those is a bit concerning...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.