Investors were eager to hold shares of Mara Holdings (MARA 9.88%) on Tuesday. This was readily apparent with the stock's 10% rise in value on the day due in no small part to a monster price-target increase from an analyst. Mara's double-digit surge easily outpaced the 0.3% increase of the bellwether S&P 500 index that trading session.
Staying pat despite the hike
Before market open, Compass Point pundit Michael Donovan nearly doubled his fair value assessment on Mara Holdings. He now believes it can reach a price of $30 per share, a level significantly higher than his previous estimation of $18. Despite the heavy raise, Donovan wouldn't be a buyer of the stock, as he maintained his neutral recommendation.
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It wasn't immediately clear why the analyst decided to raise his price target. Regardless, it should only add to the buy case for Mara Holdings, which has been a popular title among investors.
There are several reasons for this, not least the recent peaking of Bitcoin's price and indications that at least one crypto miner is gearing up to produce more of the No. 1 digital currency.
Admirable diversification
The market is also impressed by Mara Holdings' considerable diversification efforts, which have seen the company lean into data centers and next-generation services associated with such facilities. In an age when artificial intelligence (AI) is enjoying insatiable demand, these businesses have significant potential indeed.
