Needham raised the firm’s price target on Applied Digital to $16 from $8.50 and keeps a Buy rating on the shares. The analyst notes that the company’s new AI contracts show a strong pipeline of demand. The firm also believes that the downside on the stock is limited given Applied Digital’s stable BTC mining segment, which should remain solid until the March 2024 Halving. At enterprise value that is 7.7-times expected FY24 EBITDA, the market is pricing in little for the company’s AI and HPC businesses, Needham tells investors in a research note.
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