Source: davit kirakosyan
WhiteFiber’s Stock Outlook Adjusted by B. Riley
B. Riley, a renowned financial services firm, has revised its price target for WhiteFiber Inc. (NASDAQ: WYFI). The financial institution decreased its price prediction from $44 to $40, whilst maintaining a Buy rating for the tech company. This decision comes on the heels of recent changes related to WhiteFiber’s initial long-term co-location agreement.
WhiteFiber’s Co-location Agreement With Nscale Global Holdings
WhiteFiber recently announced its first-ever long-term co-location agreement with Nscale Global Holdings, a significant development for the company. This arrangement will be centered at the NC-1 data center campus. B. Riley updated its outlook for WhiteFiber following the news of this co-location agreement.
Although the agreement took longer to finalize than initially anticipated, B. Riley praised WhiteFiber’s reaffirmation of its original deployment timeline. The financial services firm stated this demonstrated WhiteFiber’s execution capabilities and validated the company’s retrofit-based development model.
WhiteFiber’s Future Financing Plans
Looking ahead, WhiteFiber disclosed it was in the process of having advanced discussions with several lenders. The company is seeking a construction financing facility expected to include an accordion-style structure. The completion of this deal is targeted for early in the first quarter of 2026.
The company’s management also hinted at potential credit enhancements that could lower the overall funding costs. This might be achieved with increased clarity on ultimate off-takers, which would be a positive development for the company’s financial health.
Upcoming Capacity Increase to Boost WhiteFiber’s Market Position
B. Riley noted that the upcoming capacity, expected to be available in less than two quarters, reinforced WhiteFiber’s speed-to-market thesis. This new capacity would position WhiteFiber to broaden its reach across multiple sites, highlighting the company’s potential for expansion.
However, B. Riley has slightly reduced its EBITDA forecasts for WhiteFiber. Reflecting the updated deployment timing and more conservative Cloud Services assumptions, the firm dropped its second-quarter 2026 EBITDA estimate to $17.9 million from $19.5 million. The full-year 2026 EBITDA is now forecasted at $92.7 million, down from the previous prediction of $99.5 million.
WhiteFiber’s Current Trading Level
At present, WhiteFiber is trading at roughly 11x EV/EBITDA based on 2026 estimates. B. Riley pointed out that this is about 8x EV/EBITDA on a fourth-quarter 2026 run-rate basis. This represents a notable discount to peer valuations, which are in the mid- to high-teens.
Looking Ahead
The revised price target and the ensuing discussions around WhiteFiber’s financial outlook highlight the complexities and dynamic nature of the tech industry. As WhiteFiber moves forward with its co-location agreement and financing plans, it will be critical to monitor how these developments impact the company’s overall financial health and market position. Despite some hurdles, the company’s reaffirmation of its deployment timeline and potential for expansion across multiple sites makes it an interesting proposition for investors. As always, investors are encouraged to conduct their own research and due diligence before making any financial decisions.