Needham analyst John Todaro maintained a Buy rating on Applied Digital Corporation (APLD – Research Report) today and set a price target of $16.00.
John Todaro’s rating of Applied Digital Corporation (ticker: APLD) with a Buy is influenced by a mix of recent events and strategic corporate changes. Todaro takes into account the temporary setback at Applied’s Ellendale bitcoin mining hosting site due to a weather-induced incident, which resulted in equipment issues and an approximate two-week downtime. Although this incident led to a revision of the Q3 ’24 revenue estimate, with a reduction of around $9 million, there is an expectation of improvement in the coming weeks as communicated by MARA, which hosts mining rigs at the site.
Moreover, the departure of APLD CEO Wes Cummins from B Riley and the subsequent independence of 272 Capital from the B Riley Asset Management umbrella are viewed as positive developments. This transition has apparently resolved an ongoing investor concern, potentially clearing the way for more focused leadership and operational efficiency within Applied Digital Corporation. Todaro’s recommendation suggests that despite the temporary operational hiccup, the company’s long-term prospects appear favorable, warranting a Buy rating.
Todaro covers the Financial sector, focusing on stocks such as Coinbase Global, Marathon Digital Holdings, and Applied Digital Corporation. According to TipRanks, Todaro has an average return of 27.3% and a 54.90% success rate on recommended stocks.
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Applied Digital Corporation (APLD) Company Description:
Applied Science Products, Inc. operates as a technology company, which engages in the development of patented technology such as tailored plasma gas chemistry for a wide range of applications. The company was founded in May 2001 and is headquartered in Lenoir City, TN.
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