WhiteFiber NC-1 deal is promising, says B. Riley, seeing 127% upside after stock price plunge
TL;DR
B. Riley maintains a buy rating on WhiteFiber after its NC-1 deal with Nscale, seeing 127% upside potential despite a recent stock price decline. The bank cites strong execution timeline and advanced lender talks for construction financing.
Key Takeaways
- •B. Riley reiterated its buy rating on WhiteFiber stock with a $40 price target, representing 127% upside from current levels.
- •The NC-1 deal with Nscale supports WhiteFiber's execution capability and original deployment timeline according to analysts.
- •WhiteFiber is in advanced talks with lenders for a construction facility expected to close in early 2026.
- •The stock trades at a discount to peers at 11x EV/EBITDA on 2026 estimates versus mid-to-high teens for competitors.
What to know:
- B. Riley said WhiteFiber’s NC-1 Nscale deal backs the company's timeline and execution.
- Lender talks for a construction facility are advanced, with potential credit enhancements.
- The bank's analysts reiterated their buy rating on the stock while trimming their price target to $40 from $44 following the stock's more than 50% decline from record highs.
- B. Riley said WhiteFiber’s NC-1 Nscale deal backs the company's timeline and execution.
- Lender talks for a construction facility are advanced, with potential credit enhancements.
- The bank's analysts reiterated their buy rating on the stock while trimming their price target to $40 from $44 following the stock's more than 50% decline from record highs.
Data center developer WhiteFiber's (WYFI) first long-term colocation deal at its flagship NC-1 campus with Nscale Global supports management’s execution and its original deployment timeline, investment bank B. Riley said in a report Tuesday.
"We believe WYFI's reaffirmation of its original deployment timeline demonstrates its execution capability and the benefit of the company's retrofit model," wrote analysts Nick Giles and Fedor Shabalin.
The analysts reiterated their buy rating on the stock while trimming their price target to $40 from $44 to reflect more conservative Cloud Services assumptions. That would be about 127% upside from last night's close of $17.62, down more than 50% from a record high two months ago.
The analysts noted that WhiteFiber is in advanced talks with lenders on a construction facility expected to close in early 2026, potentially with an accordion feature and credit enhancements that could lower its cost of capital.
On valuation, B. Riley said WhiteFiber trades at about 11x EV/EBITDA on its 2026 estimates and roughly 8x EV/EBITDA on its 4Q26 adjusted EBITDA run-rate, which it views as a meaningful discount to peers in the mid- to high-teens.
Read more: WhiteFiber signs 10-year, 40 MW colocation deal with Nscale valued at about $865 million
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