Needham analyst John Todaro has adjusted the price target for Applied Digital (APLD, Financial), reducing it from $11 to $10 while maintaining a Buy rating on the shares. The revision follows the company's third-quarter performance, which did not meet the firm's projections. A "technical difficulty" adversely affected the Cloud Services division, which Applied Digital plans to divest.
Despite the Q3 setback, the company's management remains optimistic. In a recent follow-up discussion, they described previous EBITDA projections of $1 million per megawatt as overly cautious. Furthermore, they are anticipating improved lease economics in 2024, which could enhance the company's financial outlook moving forward.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Applied Digital Corp (APLD, Financial) is $12.44 with a high estimate of $20.00 and a low estimate of $9.00. The average target implies an upside of 131.74% from the current price of $5.37. More detailed estimate data can be found on the Applied Digital Corp (APLD) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Applied Digital Corp's (APLD, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Applied Digital Corp (APLD, Financial) in one year is $13.69, suggesting a upside of 154.93% from the current price of $5.37. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Applied Digital Corp (APLD) Summary page.
