Applied Digital On Track With Long-Term HPC Opportunity, Analyst Says After Q2 Results

  • Needham's John Todaro maintained a Buy rating on Applied Digital Corp APLD with a price target of $5.50.
  • Applied Digital posted Q2'FY23 results after the close yesterday. 
  • The company beat its top-line guidance shared last year while modestly missing Todaro's estimates.
  • Q2'FY23 revenue stood at $12.3 million, below Needham's $13 million and against the Street consensus of $12.2 million.
  • Q2'FY23 adjusted EBITDA loss of $(2.13) million missed Needham's $(0.70) million loss and Street consensus loss of $(1.18) million.
  • Q2'FY23 EPS loss of $(0.29) missed Street's consensus loss of $(0.06).
  • In Todaro's view, Applied Digital is on track to hit top-line and adjusted EBITDA estimates with facility expansions tracking along. 
  • APLD's Texas facility won regulatory approval and will likely be energized in Feb '23. 
  • Todaro shared excitement about the longer-term opportunity in HPC, given the more robust economics and the demand backdrop stemming from AI and machine learning. 
  • Price Action: APLD shares traded higher by 2.40% at $2.13 on the last check Tuesday.
  • Photo Via Company
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: NewsPenny StocksPrice TargetReiterationAnalyst RatingsTechBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!