UBS Reiterates Buy Rating on Applied Digital (APLD) Following Q1 Print

UBS analyst Ryan Gravett reiterated a Buy rating and $38.00 price target on Applied Digital (NASDAQ: APLD).

The analyst commented, "Applied Digital's F1Q results highlighted both recent deployment execution and the growing scale of its platform opportunity. Assuming current demand trends persist, management now sees a path to 3.5-4.0GW of capacity by 2030 vs. 1.4GW of currently signed leases and prior commentary for 5GW by 2032. With growing concerns around data center permitting and development nationally, an established footprint in more development-friendly markets (North Dakota, Louisiana, Alabama) should provide the avenue for growth and speed to compute advantages for tenants through existing campus expansion. Management emphasized confidence around securing attractive project-level financing for already signed leases that still require funding, supported by ongoing engagement with lenders and the high investment-grade quality of the tenant (for now we model 7.5% financing costs with refinancing opportunities post-RFS). Lease economics remain another area of investor debate, but management expects the existing 250MW of tenant expansion options to be exercised by YE26 (increasing contracted capacity to 1.66GW) with pricing 15%+ above comparable lease rates (at Polaris Forge 2 and Delta Forge 1) and longer contract durations."

For an analyst ratings summary and ratings history on Applied Digital click here. For more ratings news on Applied Digital click here.

Shares of Applied Digital closed at $23.81 yesterday.

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