Analyst John Todaro from Needham reiterated a Buy rating on WhiteFiber, Inc. and increased the price target to $45.00 from $34.00.
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John Todaro has given his Buy rating due to a combination of factors that suggest a positive outlook for WhiteFiber, Inc. A significant factor is the anticipated lease agreement at the NC-1 Site, which is expected to be finalized soon. This development is crucial as it includes a credit enhancement from an investment-grade hyperscaler, indicating a strong off-taker for the site’s capacity.
Additionally, Todaro has adjusted the target multiple to 12.5x the 2027 EV/EBITDA estimate, up from 11x, reflecting the reduced risk associated with the imminent lease and credit enhancement. Although there is a slight increase in stock-based compensation estimates for 2025 due to one-time awards, this is expected to normalize in the future. Consequently, Todaro reiterates the Buy rating and raises the price target to $45.
In another report released on October 22, B. Riley Securities also maintained a Buy rating on the stock with a $44.00 price target.