Applied Digital (APLD) Stock: Analyst Maintains $58 Target Before Q3 Results

Key Takeaways

• Roth MKM’s Darren Aftahi maintains his Buy rating on Applied Digital with a $58 price target, identifying it as his preferred investment.
• The upcoming Q3 fiscal 2026 results, set for release on April 8, mark the first complete quarter reflecting full lease revenue contributions.
• Consensus forecasts point to Q3 revenue reaching approximately $75.47M, representing a ~43% year-over-year increase, though adjusted EPS loss may widen to $0.15.
• The company has secured contracts representing 600 MW of total capacity, with ambitions to achieve roughly $1B in annual NOI within five years.
• Recent developments include NVIDIA’s complete divestment of its APLD position and the company’s $2.15B senior secured notes offering priced at 6.75%.

As Applied Digital prepares to unveil its fiscal third-quarter financial results on April 8, the company enjoys continued support from Wall Street. Darren Aftahi of Roth MKM has maintained his Buy recommendation alongside a $58 price objective, designating APLD as his preferred selection among coverage names.

Applied Digital Corporation, APLD

Trading at $24.49, the shares remain substantially below Aftahi’s target price — suggesting potential appreciation exceeding 130% should his investment thesis materialize.

Aftahi emphasized that the upcoming Q3 fiscal 2026 period represents an inflection point for the business. This quarter marks the first time lease revenue will be fully captured across an entire reporting period, offering investors crucial visibility into how the company’s data center agreements are performing operationally.

Street estimates anticipate quarterly revenue approaching $75.47 million, marking approximately 43% growth compared to the year-ago period. However, profitability metrics show analysts projecting an adjusted per-share loss of $0.15, expanding from the $0.08 loss recorded in the comparable prior-year quarter.

The analyst noted that CoreWeave’s recent credit rating enhancement to A3 could create positive spillover effects for Applied Digital — potentially translating to compressed bond pricing and reduced financing expenses for APLD moving forward.

Construction has commenced at the DF1 Louisiana facility, supported by development capital from Macquarie. Aftahi indicated expectations for a third hyperscaler lease disclosure and recommended investors view any share price weakness as an attractive entry point.

Applied Digital has executed capacity agreements spanning 600 MW in total. Management targets approximately $1 billion in annualized net operating income across a five-year timeframe — characterized by Aftahi as representing a “scalable platform.”

Capital Raise and Balance Sheet Moves

On the financing front, Applied Digital recently completed a $2.15 billion issuance of senior secured notes via its APLD ComputeCo 2 LLC subsidiary. These instruments bear a 6.75% coupon, come due in 2031, and were issued at 98 cents on the dollar.

The capital raised will fund construction of a 200-megawatt critical IT load facility at the Polaris Forge 2 AI data center campus located in North Dakota, alongside debt service reserves and associated deal expenses.

In a separate development, Babcock & Wilcox secured a $2.4 billion agreement with Base Electron to deliver 1.2 gigawatts of new power generation capacity — encompassing four 300-megawatt natural gas-fired boiler systems — designated to supply Applied Digital’s AI Factory infrastructure.

NVIDIA Stake Exit and Wall Street Outlook

A notable recent development involved NVIDIA completely divesting its Applied Digital holdings, as revealed through its latest 13F regulatory filing. This exit occurred following Applied Digital’s debt offering disclosure, which initially pressured share prices.

Nevertheless, analyst sentiment remains overwhelmingly positive. All 10 Wall Street analysts tracking APLD maintain Buy ratings, with a consensus price target of $52.22 — suggesting approximately 113% potential upside from current trading levels.

Shares have declined 4.76% over the trailing seven-day period, though the stock has delivered roughly 292% returns over the past twelve months.

Market participants will scrutinize the April 8 earnings presentation for fresh details regarding new lease transactions, hyperscaler partnership progress, and management’s perspective on capital allocation strategies going forward.

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