Needham keeps Applied Digital at Buy with $83 target after Q4 results

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Needham maintained its Buy rating and $83 price target for Applied Digital, implying roughly 215% upside from the bank's $26.38 reference price on July 27. The target reflects Needham's view that Applied Digital can execute across its expanding AI data-center portfolio, with fiscal fourth-quarter results showing operating progress and advanced discussions for another 250 MW that could extend contracted capacity if signed. Applied Digital reported fiscal fourth-quarter revenue of $258.7 million and adjusted EBITDA of $42.4 million, though the headline revenue was heavily influenced by $152.4 million of low-margin tenant fit-out services described as one-time work. Excluding those services, HPC base-rent revenue reached $44.1 million, close to Needham's $44.3 million estimate, and HPC net operating income carried a 91% margin, exceeding management's guidance in the mid-80% range. Needham bases its $83 target on a 21× enterprise-value-to-EBITDA multiple applied to its discounted fiscal 2029 adjusted-EBITDA estimate of $2.33 billion, down from a previous $2.37 billion estimate.

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Artificial Intelligence · 1 stocks
Applied Digital Corporation
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Needham maintained Buy rating and $83 target after Q4 results showing operating progress and high-margin HPC NOI.

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