Data center developer WhiteFiber’s (WYFI) first long-term colocation agreement at its flagship NC-1 campus with Nscale Global supports management’s execution and its original implementation schedule, investment bank B. Riley said in a report Tuesday.
“We believe WYFI’s reaffirmation of its original implementation schedule demonstrates its ability to execute and the benefit of the company’s modernization model,” wrote analysts Nick Giles and Fedor Shabalin.
Analysts reiterated their Buy rating on the stock and cut their price target from $44 to $40 to reflect more conservative cloud services assumptions. That would be about 127% higher than last night’s close of $17.62, more than 50% lower than an all-time high from two months ago.
Analysts noted that WhiteFiber is in advanced talks with lenders about a construction facility expected to close in early 2026, potentially with an accordion feature and credit enhancements that could reduce its cost of capital.
As for valuation, B. Riley said WhiteFiber trades at about 11 times EV/EBITDA on its 2026 estimates and about 8 times EV/EBITDA on its 4Q26 adjusted EBITDA run rate, which he considers a significant discount to peers in the mid-to-high range.
Read more: WhiteFiber signs a 40 MW, 10-year placement agreement with Nscale valued at approximately $865 million
