Why Keel Infrastructure Stock Got Mashed on Monday
Key Points
Despite the deep cut, he didn't downgrade his recommendation.
He expressed concerns about the financing of upcoming projects.
- Motley Fool Issues Rare "Total Conviction" Buy Alert ›
A rather deep price target cut from an analyst was the negative catalyst that drove down Keel Infrastructure's (NASDAQ:KEEL) equity on Monday. With that stiff headwind, investors traded out of the onetime cryptocurrency miner and data center developer's stock to leave it with a more than 8% loss that trading session.
Uneven Keel?
Before market open, Keefe, Bruyette & Woods' Stephen Glagola made the change, lowering his Keel price target to $3 per share. His previous fair value assessment was $4.50. However, he left his market perform (hold, in other words) recommendation intact.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Image source: Getty Images.
According to reports, Glagola wrote that while the company's colocation fundamentals remain solid, the market needs more clarity on the construction costs and financing details of its projects.
He also expressed concern that client leases might decline across the industry, while regulatory uncertainty could grow in the otherwise promising Texas market.
From miner to landlord
While Keel is in a more advanced stage than some rivals in data center development, its three priority sites haven't yet reached the full permitting stage.
The questions Glagola raised are concerning, and the company still needs to prove it can succeed and profit in the long term from data centers, especially given how capital-intensive the shift from crypto miner to data center operator can be. I'd hold off on the shares until we get a better sense of how effectively it's managing the process.
Should you buy stock in Keel Infrastructure right now?
Before you buy stock in Keel Infrastructure, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Keel Infrastructure wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $334,793!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,257,420!*
Now, it’s worth noting Stock Advisor’s total average return is 874% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of November 2, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
