Analyst Kevin Dede from H.C. Wainwright reiterated a Buy rating on Applied Digital Corporation (APLD – Research Report) and increased the price target to $12.00 from $7.00.
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Kevin Dede has given his Buy rating due to a combination of factors including a significant new contract and strategic shifts within Applied Digital Corporation. The company recently announced a substantial 15-year, $7 billion deal with CoreWeave for a 250MW project in Ellendale, ND. This agreement is expected to significantly impact the company’s revenue trajectory, with the first 100MW coming online by the end of 2025 and an additional 150MW by mid-2026.
Moreover, the collaboration with CoreWeave, a neocloud HPC provider, is viewed as a strategic advantage over traditional hyperscalers due to their agility and speed in addressing the growing demand for AI support. Despite the discontinuation of its cloud service business, which will impact FY26 sales, the anticipated revenue from the CoreWeave deal and the company’s efforts in securing financing are seen as positive developments. These factors, along with institutional support and progress at the Ellendale site, underpin Dede’s confidence in Applied Digital’s future performance, leading to the Buy rating and an increased price target.
Dede covers the Technology sector, focusing on stocks such as DeFi Technologies, Canaan, and BIT Mining. According to TipRanks, Dede has an average return of 5.9% and a 40.40% success rate on recommended stocks.
In another report released today, Citizens JMP also maintained a Buy rating on the stock with a $18.00 price target.
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