Applied Digital Corporation (APLD) Analysts Predict 25.4% Upside Potential

Wall Street analysts expect Applied Digital Corporation (APLD) to rally 25.4% with a mean price target of $20. The stock has gained 50.8% over the past four weeks, closing at $15.95. While the lowest estimate indicates an 18.5% decline, the most optimistic analyst expects a surge of 88.1% to reach $30.00. However, the ability and unbiasedness of analysts in setting price targets have long been questionable.

Wall Street analysts are bullish on Applied Digital Corporation (APLD), with a mean price target of $20.00, representing a 25.4% upside potential from the current price of $15.95. The stock has gained 50.8% over the past four weeks, closing at $15.95. While the lowest estimate indicates an 18.5% decline, the most optimistic analyst expects a surge of 88.1% to reach $30.00. However, the ability and unbiasedness of analysts in setting price targets have long been questionable [1][2].

Analysts' growing optimism over the company's earnings prospects is evident in the strong agreement among them in revising EPS estimates higher. The Zacks Consensus Estimate for the current year has increased 8.2% over the past month, with two estimates going higher while one went lower. Additionally, APLD currently has a Zacks Rank #2 (Buy), indicating it is in the top 20% of more than 4,000 stocks ranked based on earnings estimates. This is a more conclusive indication of the stock's potential upside in the near term [1][2].

The price target increase by H.C. Wainwright to $20.00 from $15.00 reflects the company's remarkable momentum with a 252% return over the past year. The price target increase follows Applied Digital’s August 18 announcement of plans to break ground next month on Polaris Forge 2 near Fargo, North Dakota, in Harwood. The new facility aims for a 280MW power capacity with an estimated $3 billion construction budget [3].

While the consensus price target may not be a reliable indicator of how much APLD could gain, the direction of price movement it implies does appear to be a good guide. Investors should treat price targets with a high degree of skepticism and consider other fundamental factors when making investment decisions.

References:
[1] https://www.nasdaq.com/articles/wall-street-analysts-believe-applied-digital-corporation-apld-could-rally-2539-heres-how
[2] https://finance.yahoo.com/news/wall-street-analysts-believe-applied-135501764.html
[3] https://www.investing.com/news/analyst-ratings/applied-blockchain-stock-price-target-raised-to-20-from-15-at-hc-wainwright-93CH-4208718