Lake Street says Applied Digital power outage ‘disappointing’ ‘growing pains’

Lake Street says the power outage announced by Applied Digital is “disappointing,” but views it as “more growing pains” and believes the mid-term growth trajectory remains intact. The firm, which believes the current valuation implies investors are taking “a show-me stance on expected growth and new customer wins,” is reducing estimates but maintains a Buy rating and $19 price target on Applied Digital shares.