Applied Digital price target lowered to $7 from $19 at Lake Street

Lake Street analyst Rob Brown lowered the firm’s price target on Applied Digital to $7 from $19 and keeps a Buy rating on the shares following Q4 results that the firm says were “disappointing and reflected a combination of transformer equipment failures and a slower-than-expected ramp to the AI cloud business.” While these issues should improve, they will continue to impact the next two to three quarters, the analyst tells investors in a post-earnings note.