In-Depth Examination Of 4 Analyst Recommendations For Applied Digital


During the last three months, 4 analysts shared their evaluations of Applied Digital APLD, revealing diverse outlooks from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 4 0 0 0 0
Last 30D 1 0 0 0 0
1M Ago 1 0 0 0 0
2M Ago 1 0 0 0 0
3M Ago 1 0 0 0 0

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $13.25, a high estimate of $16.00, and a low estimate of $8.00. This current average has decreased by 8.62% from the previous average price target of $14.50.

Deciphering Analyst Ratings: An In-Depth Analysis

The perception of Applied Digital by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Lucas Pipes B. Riley Securities Lowers Buy $8.00 $10.00
John Todaro Needham Lowers Buy $13.00 $16.00
John Todaro Needham Maintains Buy $16.00 -
Mike Cikos Needham Lowers Buy $16.00 $17.50

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Applied Digital. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Applied Digital compared to the broader market.
  • Price Targets: Analysts predict movements in price targets, offering estimates for Applied Digital's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Applied Digital's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Applied Digital analyst ratings.

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About Applied Digital

Applied Digital Corp designs, develops and operates next-generation datacenters across North America to provide digital infrastructure solutions to the rapidly growing high performance computing industry.

A Deep Dive into Applied Digital's Financials

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Applied Digital displayed positive results in 3 months. As of 30 November, 2023, the company achieved a solid revenue growth rate of approximately 242.0%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: Applied Digital's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -24.95%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Applied Digital's ROE stands out, surpassing industry averages. With an impressive ROE of -7.43%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Applied Digital's ROA excels beyond industry benchmarks, reaching -2.54%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 1.18, Applied Digital adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Significance of Analyst Ratings Explained

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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