UBS analyst John Hodulik has initiated coverage of Applied Digital Corporation with a Buy rating, setting a price target of $38. This move aligns the bank with other Wall Street firms supporting the company's AI infrastructure business.
The company reported fourth-quarter fiscal year 2026 revenue of $258.7 million, marking a 407% increase year-over-year. For the full fiscal year 2026, revenue reached $611.3 million, a 167% rise compared to the previous year.
Applied Digital operates five data center campuses, including sites branded as Polaris Forge and Delta Forge. The business model relies on 15-year take-or-pay lease agreements with major technology providers.
The total value of long-term contracts across the company's five campuses is approximately $36 billion. While UBS remains conservative with its $38 target, the broader consensus among 15 to 20 firms suggests price targets exceeding $60.
