The first long-term colocation agreement between data center developer WhiteFiber (WYFI) and Nscale Global at its flagship NC-1 campus will support management's execution and initial deployment schedule, investment bank B. Riley said in a report Tuesday.
Analysts Nick Giles and Fedor Shabalin said: “We believe WYFI's reaffirmation of its original deployment schedule demonstrates the company's ability to execute and the benefits of its retrofit model.”
Analysts reiterated their Buy rating on the stock while lowering their price target from $44 to $40 to reflect more conservative cloud service assumptions. This would be an increase of about 127% from last night's closing price of $17.62, and a drop of more than 50% from its all-time high two months ago.
Analysts said White Fiber is in advanced discussions with lenders for the construction facility, which is expected to close in early 2026, and could include accordion features and credit enhancements that could lower capital costs.
Regarding White Fiber's valuation, B. Reilly said that he believes White Fiber is trading at approximately 11x EV/EBITDA in 2026 and approximately 8x EV/EBITDA in Q4 2026 adjusted EBITDA run rate, which is a significant discount compared to peers in the mid-to-high teens.
read more: WhiteFiber signs 10-year 40MW colocation agreement with Nscale worth approximately $865 million
