Applied Digital price target lowered to $13 from $14 at Roth MKM

Roth MKM lowered the firm’s price target on Applied Digital to $13 from $14 and keeps a Buy rating on the shares. The company’s Q2 earnings missed expectations due to delayed networking components affecting GPU delivery, while the management also reset guidance, expecting to exit FY24 with a run rate of about $500M/$250M in revenue and adjusted EBITDA, the analyst tells investors in a research note. Even with lowered GPU targets, liquidity remains a concern for Applied Digital barring higher prepayments, the firm added.