Analyst John Todaro of Needham reiterated a Buy rating on Applied Digital Corporation, retaining the price target of $41.00.
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John Todaro has given his Buy rating due to a combination of factors that suggest Applied Digital Corporation is poised for growth. One of the key reasons is the company’s ability to secure more power sources than previously anticipated, which is crucial for its operations. This potential for increased power capacity is supported by recent rapid site procurements, indicating a strong operational strategy.
Furthermore, Applied Digital has been receiving numerous offers for stranded power, which the company is confident it can utilize over the next five years. The analyst also notes that while the equipment supply chain presents some challenges, Applied Digital has developed a robust supply chain capable of sourcing significant equipment annually. Given these factors, along with the company’s target of $1 billion in net operating income over the next five years, Todaro believes this target might be conservative, given the ongoing demand and power sourcing capabilities.
In another report released on October 27, Compass Point also reiterated a Buy rating on the stock with a $45.00 price target.