In a report released today, Kevin Dede from H.C. Wainwright reiterated a Buy rating on Digi Power X, with a price target of $5.00.
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Kevin Dede has given his Buy rating due to a combination of factors including Digi Power X’s strategic focus on high-performance computing (HPC) and its promising financial position. Despite a recent decline in revenue, the company maintains a strong liquidity position with $90 million in cash and digital assets, and no debt. This financial stability supports their ambitious HPC deployment plans, which are expected to significantly enhance their operational capacity by the end of 2026.
Additionally, the partnership with Supermicro for sourcing machines and the introduction of the NeoCloudz GPU-as-a-service platform are seen as potential growth drivers. Although the GaaS market presents challenges, the company’s strategic initiatives and partnerships are expected to attract long-term contracts and increase revenue. These factors, combined with the advancements in their HPC collocation initiative, underpin the increased price target and Buy rating.
In another report released on November 14, Alliance Global Partners also reiterated a Buy rating on the stock with a $7.00 price target.