B. Riley keeps $66 Applied Digital target after fiscal Q4 EBITDA beat
B. Riley Securities reiterated its Buy rating and $66 target for Applied Digital (APLD) after the company reported fiscal Q4 adjusted EBITDA of $42.4M, above B. Riley’s $24.6M estimate and consensus $25.6M. Revenue was $258.7M, including $152.4M from tenant fit-outs. The bank cited progress at Polaris Forge and expectations for higher lease rates and improved financing costs.
How this was made
The 30-second read
Why it matters
The analyst ties the EBITDA beat to execution (Building 2 delivered on schedule) and argues that improving construction records, higher future lease rates, and lower borrowing costs should support the equity valuation.
Market read
Fresh, specific datapoints (EBITDA beat, Building 2 delivery, $2.15B notes coupon, and 250 MW lease negotiations) can influence near-term positioning, even though the article is primarily an analyst reiteration.
What to watch
The note emphasizes fit-out payments and construction sequencing; traders may discount durability if revenue mix or lease economics shift after campuses enter service.
Background
Applied Digital is building AI data-center capacity across multiple campuses (Polaris Forge, Delta Forge) and is funding expansion with senior secured notes while negotiating additional leases.
Ticker impact
B. Riley reiterated Buy and kept a $66 target after Applied Digital reported fiscal Q4 adjusted EBITDA of $42.4M, beating estimates.
Near-term bias modestly positive as the note reinforces the EBITDA beat and pipeline execution, but it is still an analyst action rather than a new company disclosure.
The article’s newest concrete facts are the EBITDA beat, revenue/EBITDA drivers, Building 2 on-schedule delivery, and details of the $2.15B notes financing and lease negotiations. However, the headline is an analyst reiteration, which typically has less incremental impact than a fresh company filing or guidance update.
Market effects
Supports the AI infrastructure and data-center buildout read-through that execution and lease contracting can improve cash-flow visibility.
Highlights U.S. campus buildouts and Dakotas power generation partnerships, relevant to regional utility and construction supply chains.
Limited direct global linkage beyond broader AI infrastructure financing conditions.
Counterpoint
Lease negotiations for 250 MW remain unresolved, so the higher-rate thesis may not fully materialize despite the EBITDA beat.
Key entities
- companyApplied Digital
AI infrastructure developer reporting fiscal Q4 adjusted EBITDA of $42.4M and delivering Building 2 (75 MW) on schedule, while negotiating additional lease capacity and funding expansion with $2.15B notes.
- analyst_firmB. Riley Securities
Reiterated Buy rating and $66 price target after the fiscal Q4 results and related financing/lease updates.
