WhiteFiber stock initiated with Buy rating at Needham, $34 price target

Published 02/09/2025, 12:00
WhiteFiber stock initiated with Buy rating at Needham, $34 price target

Investing.com - Needham has initiated coverage on WhiteFiber Inc (NASDAQ:WYFI) with a Buy rating and a price target of $34.00. According to InvestingPro data, WhiteFiber currently maintains a market capitalization of $616 million, with the stock trading near its 52-week range of $14.01-$25.13.

The research firm highlights that WhiteFiber’s valuation is attractive, with the stock currently trading at 6.1 times Needham’s discounted 2027 EBITDA estimates. However, InvestingPro analysis shows the company’s current EV/EBITDA multiple stands at 32.3x, with several ProTips indicating elevated valuation metrics.

Needham notes that WhiteFiber has a Letter of Intent in place for 24 MW at a North Carolina facility, with negotiated pricing at $1.6 million per gross MW.

The firm believes that if WhiteFiber can convert this LOI to a finalized lease, shares should re-rate to approximately 11 times Needham’s 2027 EV/EBITDA estimates.

WhiteFiber also maintains a 601 MW near-term HPC pipeline and is expanding its Cloud Segment, which currently has 4,500 Nvidia GPUs and is expected to increase to over 6,800 by the end of 2026.

In other recent news, WhiteFiber Inc. announced the pricing of its upsized initial public offering at $17 per share, with 9,375,000 ordinary shares set to debut on the Nasdaq Capital Market. The offering is scheduled to close soon, pending customary closing conditions. Analysts have shown interest in WhiteFiber, with Clear Street initiating coverage with a Buy rating and a $26 price target, citing growth in the company’s Cloud and High-Performance Computing segments. Similarly, B.Riley has given WhiteFiber a Buy rating, setting a higher price target of $34, and emphasizing its position as a leading AI infrastructure provider. Macquarie has also started coverage with an Outperform rating and a $28 price target, highlighting WhiteFiber’s data center operations across North America. These developments come shortly after WhiteFiber’s spin-off from Bit Digital, Inc., which retains a 74.3% ownership in the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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