WhiteFiber (WYFI), a data center developer, has secured its first long-term colocation agreement at its flagship NC-1 campus with Nscale Global, as highlighted in a report by investment bank B. Riley on Tuesday. This move supports management’s execution and original deployment timeline.
Analysts Nick Giles and Fedor Shabalin noted, “WYFI’s commitment to its original deployment timeline showcases its execution capabilities and the advantages of its retrofit model.”
They reiterated their buy rating for the stock while adjusting their price target from $44 to $40, reflecting more cautious assumptions in Cloud Services. This suggests approximately 127% upside potential from last night’s close at $17.62, down over 50% from a two-month record high.
The analysts pointed out that WhiteFiber is in advanced discussions with lenders regarding a construction facility anticipated to close in early 2026, possibly featuring an accordion option and credit enhancements to reduce its capital costs.
Regarding valuation, B. Riley indicated that WhiteFiber trades at approximately 11x EV/EBITDA based on its 2026 estimates and around 8x EV/EBITDA on its adjusted EBITDA run-rate for 4Q26, which they consider a significant discount compared to peers trading in the mid to high teens.
Read more: WhiteFiber signs 10-year, 40 MW colocation deal with Nscale valued at about $865 million
