Applied Digital Corporation (APLD) shares are on the rise Thursday, fueled by a strong first-quarter earnings report that exceeded analyst expectations. The company attributed the revenue increase to the successful launch of its Cloud Services business at the end of the previous fiscal year.
Adding to the positive news, Applied Digital recently secured a $160 million private placement from a group of institutional and accredited investors, notably including tech giant Nvidia Corp. This investment further bolsters the company’s financial position and growth prospects.
Following the strong earnings announcement, several analysts have upgraded their ratings and price targets on APLD. Roth MKM reiterated its Buy rating and maintained its $10 price target. Craig-Hallum analyst George Sutton also maintained a Buy rating but raised the price target from $10 to $12. Needham analyst John Todaro also reiterated a Buy rating with an $11 price target.
This wave of positive analyst sentiment suggests that APLD may have further upside potential. The average 12-month price target from Wall Street analysts sits at $9.89, with a high target of $12 and a low target of $5. With nine analysts holding positive ratings and none issuing neutral or negative ratings, the outlook appears bullish.
It’s important to remember that stocks don’t move in a straight line, and past performance is not indicative of future results. However, the combination of strong earnings, a strategic investment from Nvidia, and positive analyst sentiment suggests that APLD could be a stock worth watching in the coming months.
