Applied Digital price target lowered to $10 from $11 at Roth MKM

Roth MKM analyst Darren Aftahi lowered the firm’s price target on Applied Digital to $10 from $11 and keeps a Buy rating on the shares. The company’s Q4 Revenue was in line but it’s larger losses were driven by higher GPU depreciation and High Performance Computing costs, the analyst tells investors in a research note. There is some time between when Applied Digital will finish construction of building #1 and when this moves to Ready for Service, though the signing of a formal lease and potential project financing are critical for growth and stock appreciation, the firm added.