Street Calls of the Week
Investing.com - Macquarie initiated coverage on WhiteFiber Inc (NASDAQ:WYFI) with an Outperform rating and a price target of $28.00 on Tuesday. The target represents significant upside from the current trading price of $16.91, though InvestingPro data shows the company trading at elevated valuation multiples with a market capitalization of $616 million.
The research firm highlighted WhiteFiber’s operations in high-performance computing (HPC) data centers and AI cloud services, noting its urban-adjacent data center locations with initial gross capacity of approximately 115 MW across Canada and the United States.
Macquarie pointed to WhiteFiber’s 1.3 GW forward pipeline across North America, which could be developed through brownfield sites and retrofits, described as a core competency of the company with a proven blueprint for execution.
The firm emphasized that operational expertise from WhiteFiber’s acquired Enovum team would be instrumental in site selection and execution of these expansion plans.
Macquarie also noted that WhiteFiber’s Cloud Services division leverages NVIDIA GPUs, servers, and advanced storage systems to offer customized high-performance solutions with uptime exceeding 99.5%, currently operating from a leased third-party colocation site in Iceland and serving three clients, with ongoing negotiations to integrate cloud services at data centers across North America, Europe and Asia.
In other recent news, WhiteFiber , Inc. announced the pricing of its upsized initial public offering at $17 per share. The company offered 9,375,000 ordinary shares, and these shares are set to begin trading on the Nasdaq Capital Market. This marks a significant milestone for WhiteFiber as it transitions to being publicly traded. Additionally, B.Riley has initiated coverage on WhiteFiber with a Buy rating, setting a price target of $34.00. This positive outlook is attributed to WhiteFiber’s position as a leading provider of AI infrastructure. The company was recently carved out from Bit Digital, Inc., which retains a 74.3% ownership stake in WhiteFiber. These developments reflect WhiteFiber’s strategic positioning in the AI infrastructure sector.
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