Needham analyst John Todaro has reiterated their bullish stance on APLD stock, giving a Buy rating today.
John Todaro’s rating is based on several promising developments for Applied Digital Corporation. The company has indicated progress in securing a high-performance computing lease and has provided a clearer outlook for achieving over 200 megawatts of capacity by 2026, which is a significant increase from previous estimates. Management plans to offer a formal update on leasing discussions soon, with expectations of improved economic outcomes compared to previous projections.
Additionally, management has suggested that the prior EBITDA guidance of $1 million per megawatt might be conservative, hinting at potentially better financial performance. Despite some challenges in the recent quarter, particularly with the Cloud Services segment, the company’s discussions with major hyperscalers and other entities could accelerate timelines and enhance economic prospects, supporting the Buy rating.
In another report released today, H.C. Wainwright also reiterated a Buy rating on the stock with a $7.00 price target.