In a report released today, Kevin Dede from H.C. Wainwright reiterated a Buy rating on Digi Power X, with a price target of $2.50.
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Kevin Dede has given his Buy rating due to a combination of factors that highlight Digi Power X’s potential for growth and financial improvement. The company is transitioning its Alabama data center from bitcoin mining to high-performance computing (HPC), which is expected to significantly boost sales and earnings in the coming year. This transition involves the installation of 15, 1MW pods equipped with Nvidia chips, which could generate substantial revenue and high EBITDA margins.
Furthermore, Digi Power X has addressed its capital constraints with recent funding efforts, positioning itself well for future expansion. The company’s strategic focus on AI-driven operations and its substantial power capacity provide a strong foundation for growth. Despite the inherent risks associated with cryptocurrency, Kevin Dede maintains a positive outlook on Digi Power X’s ability to deliver on its initiatives, supporting a Buy rating and a price target of $2.50.