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Investing.com - Needham raised its price target on WhiteFiber Inc (NASDAQ:WYFI) to $45.00 from $34.00 on Monday, while maintaining a Buy rating on the stock. The new target represents significant upside from the current price of $34.04, though InvestingPro analysis suggests the stock is currently trading above its Fair Value.
The research firm believes a lease agreement for WhiteFiber’s NC-1 Site is imminent, with only final signature items remaining in the process. Needham also indicated that a credit enhancement from an investment-grade hyperscaler is likely included in the deal. This development could be crucial for WhiteFiber, which InvestingPro data shows has been rapidly burning through cash, with negative free cash flow of $195.32 million in the last twelve months.
The price target increase reflects Needham’s decision to raise its target multiple to 12.5x 2027 EV/EBITDA estimate, up from 11x previously. This adjustment comes as the firm sees reduced risk in WhiteFiber’s near-term outlook due to the expected lease agreement and hyperscaler credit enhancement. The stock has shown strong momentum, with an 86.62% return over the past six months, though it currently trades at a demanding EV/EBITDA multiple of 146.53x.
Needham has modestly increased its stock-based compensation (SBC) estimates for calendar year 2025 by $7.5 million due to one-time stock awards, resulting in corresponding downward adjustments to earnings per share estimates.
The firm expects SBC to return to previously estimated levels going forward, and reiterated its Buy rating on WhiteFiber shares alongside the higher price target.
In other recent news, WhiteFiber Inc reported a significant 48% year-over-year increase in its Q2 2025 revenue, reaching $18.7 million. This figure slightly surpassed Needham’s estimate of $18.3 million. However, the company reported a net loss of $8.8 million, with earnings per share (EPS) at a negative $0.0963. Despite this, investor sentiment remained positive, as reflected in the company’s stock performance. WhiteFiber also maintained its Buy rating and a $34.00 price target from Needham, owing to its progress in the high-performance compute (HPC) lease market. H.C. Wainwright initiated coverage on WhiteFiber with a Buy rating and set a price target of $34.00. These developments follow WhiteFiber’s recent transition to a standalone entity after being spun out from Bit Digital. The company’s adjusted EBITDA of $3.3 million was below expectations due to higher general and administrative expenses, which included one-time costs anticipated to decrease.
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