Applied Blockchain Inc (APLD) PT Raised to $41 at Needham

Needham analyst John Todaro raised the price target on Applied Blockchain Inc (NASDAQ: APLD) to $41.00 (from $21.00) while maintaining a Buy rating.

The analyst commented: "APLD reported stronger than expected top-line results after the close yesterday. All eyes now turn to Polaris Forge 2 (PF-2) where we believe a lease with an IG hyperscaler is upcoming. We increase our '28FY estimates which assume PF-2 comes online in late '26CY in phases (starting with 25MW/ scale to 200MW IT load).

We have increasing confidence in APLD's pipeline with mgmt. believing over the next 3-5 years PF-1 and PF-2 can scale to 1GW each and up to 4GW of LT potential capacity (inclusive of ~300MW in SD). On the back of 1) increased transparency to the pipeline and 2) our expectations of a near term IG hyperscaler lease at PF-2, we raise our PT to $41 predicated on 27x our discounted 2028FY EV/EBITDA, inclusive of remaining debt financing + est. Macquarie dilution."

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