Applied Blockchain stock price target raised to $40 from $20 at H.C. Wainwright

Investing.com - H.C. Wainwright doubled its price target on Applied Blockchain Inc (NASDAQ:APLD) to $40 from $20 on Monday, while maintaining a Buy rating on the stock. The stock has shown remarkable momentum, surging over 540% in the past six months, though InvestingPro data indicates it’s currently trading above its Fair Value with an RSI suggesting overbought conditions.

The price target increase follows Applied Digital’s first quarter fiscal 2026 results, which demonstrated the company’s hyperscaler datacenter build capabilities. The quarter ended August 31, 2025. With a market capitalization of $9.5 billion and revenue of $173.6 million in the last twelve months, InvestingPro analysis reveals 18+ additional insights available for subscribers.

H.C. Wainwright highlighted a new 15-year contract valued at $11 billion with CoreWeave, which translates to approximately $144 million per 100MW as Applied brings power online starting December 2025.

The research firm noted significant financial support for Applied Blockchain from two separate Macquarie groups (MAM and MEC) and Related Group, marking a substantial turnaround for a company that "could barely rub two pennies together" about 18 months ago.

H.C. Wainwright was particularly impressed with CEO Wes Cummins’ strategy of building facilities in advance of available power for 2027-2028, while managing complex logistics including transformers, generator sets, and UPS systems installation.

In other recent news, Applied Digital Corp reported its first-quarter fiscal year 2026 earnings, surpassing analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of -$0.03, significantly better than the forecasted -$0.14. Revenue for the quarter reached $64.2 million, exceeding the projected $50.97 million. Following these strong results, Needham raised its price target for Applied Blockchain to $41, maintaining a Buy rating. Similarly, Citizens increased its price target to $40 from $35 while maintaining a Market Outperform rating. The upward revisions in price targets were influenced by the company’s better-than-expected financial performance, including a one-time revenue contribution. These developments reflect positive sentiment from analysts regarding Applied Digital’s recent performance.

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