Why Applied Digital Could Exceed Street Expectations: Analyst Forecasts Earlier Deliveries On AI Contracts
Portfolio Pulse from Lekha Gupta
Needham analyst John Todaro has raised the price target on Applied Digital Corp (NASDAQ:APLD) to $17.5 from $16 with a Buy rating. This follows APLD's better-than-expected FY24 guidance after its Q4 FY23 earnings results. The company reported Q4 FY23 revenue of $22 million, up 193% Y/Y, but missed the consensus of $29.57 million. For FY 2024, APLD expects revenue within $385 million – $405 million and adjusted EBITDA of $195 million – $205 million. Todaro believes APLD can deliver on its first and second Character AI contracts earlier than expected.
July 25, 2023 | 7:14 pm
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Applied Digital Corp's price target has been raised by Needham analyst John Todaro following better-than-expected FY24 guidance. The company's shares are up 18.7%.
The raised price target and the better-than-expected FY24 guidance are positive news for Applied Digital Corp. This has led to an increase in the company's stock price.
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