Applied Blockchain Inc (APLD) PT Lowered to $8 at B.Riley

B.Riley analyst Lucas Pipes lowered the price target on Applied Blockchain Inc (NASDAQ: APLD) to $8.00 (from $10.00) while maintaining a Buy rating.

The analyst commented: 'We are reducing our estimates for Applied Digital Corporation to reflect the forementioned issues at Ellendale and Garden City during 1Q24. Additionally, we assume gradual improvement in utilization rate at Ellendale. As a reminder, on March 15, APLD announced that it has entered into a definitive agreement to sell its 200 MW data center in Garden City to Marathon Digital Holdings for a net purchase price of approximately $87.3M, with a gross purchase price of $97.3M after adjustments contemplated in the purchase agreement. In addition to the purchase price, this transaction will release $12M of restricted cash previously committed as collateral for the site’s letter of credit. The transaction is subject to customary closing conditions and is expected to close in CY 2Q24. We are revising our estimates for FY 3Q24 and FY 2024 adjusted EBITDA from $17.6M to $10.4M and from $75.5M to $54.9M, respectively. Our PT moves from $10 to $8.'

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