Benchmark Raises Hut 8 Price Target to $165 on $16.8B AI Data Center Contracts, Implies 69% Upside

According to Benchmark analyst Mark Palmer, the firm raised its price target for Hut 8 Corp. (HUT) to $165 from $85, citing the company's commercialization of its Beacon Point AI data center campus and $16.8 billion in contracted value across two AI infrastructure leases. At Tuesday's trading level of around $97, the revised target implies approximately 69% upside. Palmer noted that Beacon Point's Phase 1 redesign—supporting 352 MW of IT capacity, up 57% from the original 224 MW plan—"changes the math" for the company.

The Phase 1 lease at Beacon Point carries $9.8 billion in base-term value with approximately $655 million in expected average annualized net operating income. Combined with the $7 billion River Bend lease, total base-term lease value reaches $16.8 billion; aggregate value could rise to $42.8 billion if tenants exercise embedded five-year renewal options.