Street Calls of the Week
Investing.com - Needham raised its price target on Applied Blockchain Inc (NASDAQ:APLD) to $41.00 from $21.00 on Friday, while maintaining a Buy rating on the stock. The company, now valued at $8.02 billion, has seen its stock surge 283% year-to-date, though InvestingPro analysis suggests the stock is trading above its Fair Value.
The price target increase follows stronger-than-expected top-line results reported by Applied Blockchain after market close on Thursday. The company reported revenue of $144.19 million, with analysts maintaining a strong Buy consensus and targets ranging from $18 to $43.
Needham cited increasing confidence in Applied Blockchain’s pipeline, with management believing that over the next 3-5 years, Polaris Forge 1 (PF-1) and Polaris Forge 2 (PF-2) can each scale to 1GW, with up to 4GW of long-term potential capacity including approximately 300MW in South Dakota.
The firm expects an upcoming lease with an investment-grade hyperscaler at PF-2, which is projected to come online in late 2026 in phases, starting with 25MW and scaling to 200MW IT load.
Needham’s new price target is based on 27 times its discounted 2028 fiscal year EV/EBITDA, which includes remaining debt financing and estimated Macquarie dilution.
In other recent news, Applied Digital Corp reported its fiscal first quarter 2026 earnings, surpassing analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of -$0.03, which is significantly better than the forecasted -$0.14. Revenue also exceeded projections, reaching $64.2 million compared to the anticipated $50.97 million. This strong performance was partly due to a one-time revenue contribution, which led to an increase in the company’s stock price target. Citizens raised the price target for Applied Blockchain Inc to $40 from $35 while maintaining a Market Outperform rating. These developments reflect a positive sentiment from analysts and investors regarding the company’s financial health.
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