Analyst Expectations For Applied Digital's Future

Across the recent three months, 6 analysts have shared their insights on Applied Digital APLD, expressing a variety of opinions spanning from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $9.5, with a high estimate of $12.00 and a low estimate of $7.00. This current average has decreased by 18.1% from the previous average price target of $11.60.

Diving into Analyst Ratings: An In-Depth Exploration

An in-depth analysis of recent analyst actions unveils how financial experts perceive Applied Digital. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Applied Digital. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Applied Digital compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Applied Digital's stock. This analysis reveals shifts in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Applied Digital's market standing. Stay informed and make data-driven decisions with our Ratings Table.

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All You Need to Know About Applied Digital

Applied Digital Corp is a designer, developer, and operator of next-generation digital infrastructure across North America. It provides digital infrastructure solutions and cloud services to industries like High-Performance Computing (HPC) and Artificial Intelligence (AI). The company operates in the following business segments; Data Center Hosting Business, Cloud Services Business, and HPC Hosting Business. The majority of its revenue is generated from the Data Center Hosting Business which operates data centers to provide energized space to crypto mining customers.

Financial Milestones: Applied Digital's Journey

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Applied Digital's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 22.08% as of 28 February, 2025, showcasing a substantial increase in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Applied Digital's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -68.21%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -8.12%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Applied Digital's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -2.22%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Applied Digital's debt-to-equity ratio is below the industry average. With a ratio of 2.19, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

How Are Analyst Ratings Determined?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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