WhiteFiber NC-1 deal is promising, says B. Riley, seeing 127% upside after stock price plunge

Group 1 - WhiteFiber's first long-term colocation deal with Nscale Global at its NC-1 campus supports management's execution and original deployment timeline, indicating strong execution capability and the benefits of its retrofit model [1] - Analysts from B. Riley reiterated a buy rating on WhiteFiber while adjusting the price target to $40 from $44, reflecting more conservative Cloud Services assumptions, which represents a potential upside of approximately 127% from the recent close of $17.62 [2] - WhiteFiber is in advanced discussions with lenders regarding a construction facility expected to close in early 2026, which may include an accordion feature and credit enhancements to lower its cost of capital [2] Group 2 - B. Riley noted that WhiteFiber trades at about 11x EV/EBITDA based on 2026 estimates and roughly 8x EV/EBITDA on its 4Q26 adjusted EBITDA run-rate, which is considered a significant discount compared to peers in the mid- to high-teens [3] - The recent colocation deal with Nscale is valued at approximately $865 million and spans a duration of 10 years, with a capacity of 40 MW [4]