Analyst John Todaro of Needham maintained a Buy rating on Applied Digital Corporation (APLD – Research Report), with a price target of $13.00.
John Todaro has given his Buy rating due to a combination of factors related to Applied Digital Corporation’s strategic business moves and potential for future growth. Despite reducing the company’s revenue and EBITDA estimates for fiscal years 2024 and 2025, Todaro acknowledges the attractive sale price of the Garden City site to MARA, which could indicate a strong pivot towards focusing on the under-construction North Dakota HPC site. This shift in strategy could streamline Applied Digital Corporation’s emphasis on high-potential areas of their business.
Furthermore, Todaro seems to recognize that while the sale of the Garden City site introduces some uncertainty and execution risk, it also presents an opportunity for the company to concentrate on its high-performance computing and cloud compute segment. The reduced price target to $13 still suggests a confidence in the company’s long-term prospects, taking into account the adjustments in revenue streams and the timeline for revenue recognition from Sai computing. Overall, Todaro’s Buy rating appears to be grounded in the belief that Applied Digital Corporation’s strategic refocusing could yield significant benefits in the longer term.
In another report released on March 15, Roth MKM also maintained a Buy rating on the stock with a $13.00 price target.
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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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