Whitefiber Inc (WYFI) Stock Forecast & Price Target

Whitefiber Inc. exhibits a positive outlook due to the recent sector re-rating following announcements by major players like Oracle and OpenAI, which has led to an increase in the company's sum-of-the-parts valuation from $28 to $32. The company's rental economics are projected to exceed initial forecasts, with base pricing being renegotiated upward, although this will require higher capital expenditures. Additionally, with an increase in the target multiple to 12.5x the 2027 EV/EBITDA estimate and expectations of high-quality lease agreements bolstered by potential credit enhancements from investment-grade hyperscalers, the company's financial stability and growth prospects appear robust.

Whitefiber Inc. reported an Adj EBITDA of $3.3 million, significantly underperforming against expectations of $6.5 million, attributed to elevated general and administrative expenses, including one-time operating costs and milestone share awards. The company's earnings per share (EPS) estimates have been downgraded from -$0.08 to -$0.28 due to these related expenses, highlighting a downward revision in financial forecasts amid a strong demand environment. Additionally, macroeconomic risks, including geopolitical tensions and potential tightening of monetary policy, pose significant threats to Whitefiber's reliance on the growth of AI workloads within its Cloud Services and HPC segments, indicating a concerning outlook for the company's stock performance.