CANG Stock Forecast & Price Target

Cango Inc. has established itself as a significant player in the bitcoin mining sector, transitioning from its roots in automotive financing, with substantial growth driven by a strategic partnership with Bitmain, resulting in a deployed hashrate of 50Eh/s and an operational efficiency of 87% as of the end of August. The company's production report indicates a rapidly increasing hashrate and improved efficiency, highlighting its potential for scalability in the competitive mining landscape. Looking ahead, Cango is focused on expanding its operations through the acquisition of additional facilities, which is anticipated to enhance operational efficiency and lower costs, supporting its long-term ambitions in high-performance computing.

Cango Inc's stock faces a negative outlook due to a valuation that suggests a significant discount compared to competitors, with a target set at a mere 2x the estimated $690.4 million revenue for FY26. The company has revised its revenue forecasts downward, with 2025 estimates decreasing from $667.7 million to $631.4 million, and 2026 projections lowered from $767.1 million to $690.4 million, reflecting a lack of confidence in operational improvements. Additionally, Cango's stock remains vulnerable to regulatory and market risks, particularly under the Holding Foreign Companies Accountable Act (HFCAA), which could lead to sharp equity repricing.