UBS reiterates Buy on Applied Digital with $38 price target after strong Q1 results
UBS renewed its Buy rating on Applied Digital, setting a $38.00 price target. The firm highlighted the company's deployment progress and expanding platform, noting the first‑quarter fiscal 2027 loss of $0.01 per share versus an expected $0.27 loss and revenue of $341.9 million versus $111.19 million forecast. UBS also pointed to management’s plan to reach 3.5‑4.0 GW of capacity by 2030 and the expectation that 250 MW of tenant expansion options will be exercised by year‑end 2026. The stock is trading at $23.66 with a market cap of $6.94 billion.
Why it matters
UBS’s $38 price target implies a potential upside of about 60% from the current $23.66 price, which could attract buying interest. The strong revenue beat and lower loss suggest improving operating performance, but UBS warns that cash burn and financing execution remain critical.
Key facts
- 1UBS reiterated a Buy rating and set a $38.00 price target on Applied Digital. investing.com
- 2Applied Digital’s first‑quarter fiscal 2027 loss was $0.01 per share, better than the expected $0.27 loss. investing.com
- 3Revenue for the quarter was $341.9 million, exceeding the forecast of $111.19 million. investing.com
- 4The stock trades at $23.66 and has a market capitalization of $6.94 billion. investing.com
- 5Management sees a path to 3.5‑4.0 GW of capacity by 2030, up from 1.4 GW of signed leases. investing.com
- 6Management expects 250 MW of tenant expansion options to be exercised by year‑end 2026, raising contracted capacity to 1.66 GW. investing.com
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.