B. Riley Maintains $66 Price Target for Applied Digital Following Q4 EBITDA Beat
B. Riley Securities has reaffirmed its Buy rating and $66 price target for Applied Digital (NASDAQ: APLD) after the company reported fiscal fourth-quarter adjusted EBITDA of $42.4 million, surpassing both B. Riley's estimate ($24.6 million) and the consensus forecast ($25.6 million). The strong performance was driven by tenant fit-out services revenue and stable HPC base rent. Applied Digital delivered a major milestone with the completion of Building 2 at Polaris Forge 1, adding 75 MW on schedule and increasing live capacity to 175 MW. B. Riley highlighted this as evidence of Applied Digital's ability to execute its development pipeline efficiently. The firm also noted ongoing lease negotiations for uncontracted capacity that could command higher rates than existing agreements. Borrowing costs have decreased, with recent financing at a lower coupon rate compared to legacy notes. Additionally, the company’s stake in Base Electron and regional utility partnerships may support future campus expansions as more power becomes available.
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