Applied Blockchain gets Buy rating amid lease growth

Roth/MKM reaffirmed a Buy rating and $58 target for Applied Blockchain, citing lease revenue growth, credit upgrades, and expansion. Shares are up 292% year-over-year.

Roth/MKM has reiterated its Buy rating and set a $58.00 price target for Applied Blockchain Inc (NASDAQ:APLD) ahead of the company’s fiscal third quarter results. The stock currently trades at $24.49, with analysts maintaining a Strong Buy consensus and price targets between $36 and $58. This quarter marks Applied Blockchain’s first full period of lease revenue. Roth/MKM notes that CoreWeave’s A3 credit upgrade should help compress the company’s bond spreads. Applied Blockchain has secured 600 megawatts of capacity and could reach about $1 billion in annualized net operating income within five years. The DF1 facility in Louisiana is underway, backed by Macquarie’s development financing. Roth/MKM anticipates another hyperscaler lease announcement soon and views any stock price weakness as a buying opportunity. Despite a 4.76% decline this week, the stock has surged 292% over the past year.