Needham maintained its Buy rating and $83 price target for Applied Digital (NASDAQ: APLD), implying roughly 215% upside from the bank’s $26.38 reference price on July 27.
The target reflects Needham’s view that Applied Digital can execute across its expanding AI data-center portfolio
Fiscal fourth-quarter results showed operating progress, while advanced discussions for another 250 MW could extend the company’s contracted capacity if they result in signed leases. Needham bases its $83 target on a 21× enterprise-value-to-EBITDA multiple applied to its discounted fiscal 2029 adjusted-EBITDA estimate. The bank forecasts $2.33 billion of adjusted EBITDA that year, down from its previous $2.37 billion estimate.
Recurring HPC rent supports the valuation Applied Digital reported fiscal fourth-quarter revenue of $258.7 million and adjusted EBITDA of $42.4 million. The headline revenue figure was heavily influenced by $152.4 million of low-margin tenant fit-out services, which Needham described as one-time work rather than recurring rental income. Excluding those services, HPC base-rent revenue reached $44.1 million, close to Needham’s $44.3 million estimate.