Arete Research Initiates Applied Digital (APLD) with $99 PT, Buy Rating

Applied Digital Corporation (NASDAQ:APLD) is one of the hot tech stocks to invest in. On January 7, Arete Research began covering Applied Digital with a Buy rating and a price target of $99.

A day before that, Freedom Capital initiated coverage of Applied Digital with a Buy rating and $36 price target. The firm projected that the company’s adjusted EBITDA margin will surpass 60% within two fiscal years. This outlook is driven by the Polaris Forge 1 and 2 projects (representing the firm’s initial 700 MW of contracted power), which are both expected to generate levered internal rates of return/IRRs in the mid-20% range.

Earlier on December 29, Applied Digital Corporation (NASDAQ:APLD) and EKSO Bionics Holdings Inc. (NASDAQ:EKSO) announced a non-binding agreement to combine Applied Digital’s cloud computing business with EKSO. This spin-out will form a new, NASDAQ-listed entity called ChronoScale Corporation, an accelerated compute platform specifically engineered for next-gen AI workloads, training, and inference. Under the terms of the proposed deal, Applied Digital will own approximately 97% of the combined company. The new entity will benefit from an alignment with Applied Digital’s AI Factory campuses, such as the award-winning Polaris Forge model, which uses proprietary waterless cooling and sustainably engineered designs. The business combination is expected to close in H1 2026.

Applied Digital Corporation (NASDAQ:APLD) designs, develops, and operates digital infrastructure solutions for HPC and AI industries in North America. It operates through: Data Center Hosting Business and HPC Hosting Business.

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Disclosure: None. This article is originally published at Insider Monkey.