Analyst John Todaro from Needham maintained a Buy rating on Applied Digital Corporation (APLD – Research Report) and keeping the price target at $11.00.
John Todaro has given his Buy rating due to a combination of factors, primarily focusing on the potential for new leases despite recent market reactions. He perceives the recent stock decline as an overreaction, largely driven by speculation about Microsoft pulling back from data center leases. However, Todaro believes that another major cloud service provider is progressing towards finalizing a lease at the Ellendale site.
The management of Applied Digital Corporation has indicated that this second customer is interested in the entire 400MW site and is moving forward with their plans. Todaro suggests that while the initial letter of intent with Microsoft may not proceed, this situation is specific to Microsoft and OpenAI. He remains optimistic that other major cloud providers will continue to sign leases in the near term, with companies like Oracle showing interest in various sites.
In another report released on February 13, Lake Street also maintained a Buy rating on the stock with a $11.00 price target.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of APLD in relation to earlier this year.