Compass Point analyst Michael Donovan has reiterated their bullish stance on APLD stock, giving a Buy rating yesterday.
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Michael Donovan has given his Buy rating due to a combination of factors that highlight the promising future of Applied Digital Corporation. The company has successfully leased its Polaris Forge 1 facility to CoreWeave, and there is a strong possibility of securing a hyperscaler for Polaris Forge 2, which is currently under construction. This progress enhances confidence in Applied’s ability to expand its high-performance computing capacity and secure stable revenue streams.
Additionally, the long-term leases with CoreWeave for the Polaris Forge 1 site, covering a substantial amount of megawatts, promise significant contracted revenue. The company’s strategic moves, such as starting construction on Polaris Forge 2 and engaging in advanced negotiations with a major hyperscaler, position it well to capitalize on immediate market opportunities. These factors, along with the increased demand for high-density rack loads and Applied’s proven execution capabilities, justify the Buy rating and the increased price target of $30.
In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $43.00 price target.