Applied Digital jumps after Wells Fargo initiates with 'overweight'

Shares of data center provider Applied Digital (APLD.O) rose 4.5% to $25.48 premarket after Wells Fargo initiated coverage on the stock with an overweight rating and a price target of $50.

• The new price target implies about 105% upside to the stock's last close.
• Wells Fargo called APLD one of its top ideas, citing more than 1.4 gigawatts of contracted capacity across five campuses in three states.
• The brokerage expects roughly 250 megawatts of additional lease signings by year-end at 15%-20% higher pricing than initial leases.
• The average rating of 14 analysts is buy; their median price target is $73, according to data compiled by LSEG.
• Up to the last close, the stock had fallen about 1% this year.