Canaan Inc. (CAN), a leading manufacturer of cryptocurrency mining equipment, saw its stock surge 5.57% in pre-market trading on Thursday. This notable uptick follows a significant 14.96% post-market rally on Wednesday, driven by a positive analyst action from B. Riley.

B. Riley, a prominent financial services firm, has raised its price target on Canaan from $2 to $3 while maintaining a Buy rating on the stock. This upward revision represents a 50% increase in the target price, signaling heightened confidence in Canaan's future prospects. The new target price of $3 suggests substantial upside potential from the stock's previous closing price, potentially attracting increased investor interest.

Canaan operates in the volatile cryptocurrency mining hardware sector, which often moves in tandem with cryptocurrency prices and mining profitability. While specific reasons for B. Riley's more bullish stance were not immediately disclosed, it could be related to improving market conditions for crypto mining or company-specific developments. Investors are advised to monitor Canaan's upcoming announcements and industry trends for a more comprehensive understanding of the company's outlook in this dynamic market.