Applied Digital price target raised to $37 from $23 at Craig-Hallum

Craig-Hallum raised the firm’s price target on Applied Digital (APLD) to $37 from $23 and keeps a Buy rating on the shares. The firm notes that development for CoreWeave (CRWV), their major customer at Ellendale, continues with building 1 part-way through the fit-out and building 2 being built in earnest. Beyond that, the company appears ready to sign a lease for their Harwood site where they have secured early financing through Macquarie, broken ground, and are expecting a much quicker build time than the 24 months the first Ellendale building took. As if this wasn’t enough, the company has started early-stage discussions with two new hyperscalers at two new sites, Craig-Hallum adds. While the firm doesn’t want to jump at the idea of early-stage negotiations, it thinks the current moment marks the beginning of a flywheel for Applied Digital.