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Compass Point upgraded Core Scientific (NASDAQ:CORZ) stock to Buy from Neutral in a recent note as analyst Chase White believes the bitcoin (BTC-USD) miner is “on more solid footing” after emerging from Chapter 11 bankruptcy.
Post-emergence, the company has “less debt, lower mandatory debt service, and sufficient capital to finish expansion projects put on hold due to bankruptcy,” White pointed out in a note.
Even so, the stock has sold off in recent days, a move that White attributes to “selling from equitized creditors and other bankruptcy parties that received shares but do not want to hold equity.” In the past five sessions, CORZ has dipped 10.4%.
The correction, nevertheless, presents a good entry point for investors, he contended.
In Wednesday morning trading, CORZ inched down 0.2%.