B. Riley Cuts WhiteFiber Target While Highlighting Execution Progress at NC-1

Core Viewpoint - B. Riley has lowered its price target on WhiteFiber Inc. to $40 from $44 while maintaining a Buy rating, following the company's first long-term co-location agreement [1] Group 1: Company Developments - WhiteFiber announced its inaugural long-term co-location agreement at the NC-1 data center campus with Nscale Global Holdings, which took longer to finalize than expected [2] - The company reaffirmed its original deployment timeline, highlighting its execution capabilities and validating its retrofit-based development model [2] Group 2: Financial Outlook - WhiteFiber is in advanced discussions with multiple lenders regarding a construction financing facility, expected to be completed in early first-quarter 2026 [3] - Management indicated that potential credit enhancements could lower overall funding costs, with more clarity on ultimate off-takers [3] Group 3: EBITDA Forecasts - B. Riley has modestly reduced its EBITDA forecasts, lowering the second-quarter 2026 estimate to $17.9 million from $19.5 million and the full-year 2026 estimate to $92.7 million from $99.5 million [4] - The upcoming capacity is expected to come online in under two quarters, supporting WhiteFiber's speed-to-market thesis and positioning the company for expansion across multiple sites [4] Group 4: Valuation Metrics - WhiteFiber is currently trading at approximately 11x EV/EBITDA on 2026 estimates and about 8x EV/EBITDA on a fourth-quarter 2026 run-rate basis, indicating a notable discount to peer valuations in the mid- to high-teens [5]