Key Takeaways:
Hut 8 Corp. (NASDAQ: HUT) received a significant price target increase to $127 from Piper Sandler, after the energy infrastructure company awarded a major contract to Jacobs (NYSE: J) to build its second U.S. AI data center campus.
"This deal is proof that Hut’s data center development model is repeatable," Piper Sandler analyst Patrick Moley said in a note, reiterating an Overweight rating on the stock.
The analyst action followed Hut 8's announcement of a sole-source engineering, procurement and construction management (EPCM) contract for its Beacon Point campus in Nueces County, Texas. The price target was lifted to $127 from a prior $93. The new target implies significant upside from its current trading levels.
The Beacon Point campus is designed to support one gigawatt of total capacity and represents the second major AI infrastructure project for Hut 8, following its River Bend campus in Louisiana. The deal brings Hut 8’s total contracted AI data center capacity to 597 MW. According to Piper Sandler's analysis, these two campuses are expected to generate an average of $1.1 billion in net operating income per year.
"Beacon Point is the second campus we have commercialized under our power-first development model, and the second time we have selected Jacobs as EPCM lead," Hut 8 CEO Asher Genoot said. "Repeatable, risk-mitigated execution at this scale requires Tier 1 counterparties who meet our standard for technical rigor and execution certainty."
Jacobs Chair and CEO Bob Pragada said the firm would apply design elements and its digital twin technology from the first project to accelerate deployment. Initial energization for the Beacon Point campus is targeted for 2027.
The price target upgrade suggests growing confidence in Hut 8's strategic pivot to an energy infrastructure platform focused on the high-demand AI data center market. Investors will watch for the initial energization of the Beacon Point campus in 2027 as the next major milestone.
This article is for informational purposes only and does not constitute investment advice.
