TAAL Distributed Information Technologies inc (CSE:TAAL, OTCQX:TAALF) (TAAL) has an admirer in broker Leede Jones Gable which has initiated coverage of the Canadian-based, vertically integrated blockchain technology company with a 'Buy' rating and a C$3 price target.
The broker wrote in a note that it had come to recognize the potential of the Bitcoin protocol after initially dismissing the hype surrounding cryptocurrency.
TAAL is engaged in the ownership and management of scalable, clean-energy blockchain infrastructure upon which it will deliver blockchain-as-a-service solutions for Web 3.0 services and applications with global reach, enabling the next era of global data commerce and real-world utility, the broker commented.
TAAL has been growing its blockchain mining infrastructure and should expect considerable revenue growth as a result of the monetization of blockchain transactions and the introduction of additional Metanet services, Leede Jones Gable analysts added.
READ: TAAL Distributed Information Technologies CEO Richard Baker presents
The broker justified its valuation at 10x EV/EBITDA for the following reasons: 1) in 2023 TAAL will move into a new 60,000 ft² facility in New Brunswick which will provide the company with 50-MW energy that will power up to 1.4 EH/s of mining capacity; 2) TAAL is well positioned for the Bitcoin halving event in 2024; and 3) the Metanet will evolve TAAL's base business of capturing blockchain subsidies towards the monetization of blockchain transactions as a service platform and will drive the next leg of growth for the company.
TAAL is positioning itself to succeed in a disruptive data-driven, transactional economy, the broker noted, with management’s strategy to use its profitable mining revenues to fund the R&D and product development of a trusted foundational layer service, delivered through its Metanet Solutions platform.
For clients who are not interested in investing directly in individual cryptocurrencies, TAAL is an excellent investment vehicle that provides direct exposure to the blockchain transaction economy, Leede Jones Gable analysts concluded.
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