Applied Digital price target lowered to $8 from $13 at Roth MKM

Roth MKM analyst Darren Aftahi lowered the firm’s price target on Applied Digital to $8 from $13 but keeps a Buy rating on the shares. The company’s Q3 results missed due to power outages and slow GPU rollout, prompting a model reset, the analyst tells investors in a research note. While headwinds persist however, its letter of intent for 400MW with a U.S. Hyperscaler is the most encouraging data point, even though financing is needed prior to shares moving higher, Roth MKM added.