B. Riley Sees Strong Upside for WhiteFiber After NC-1 Deal and Price Drop
B. Riley has expressed a positive outlook on WhiteFiber following its NC-1 Nscale deal with Nscale Global, which they say validates the retrofit model as well as management’s deployment timeline. The NC-1 deal represents WhiteFiber’s first long-term colocations at its flagship NC-1 campus.
Lender discussions for a construction facility are advanced, featuring potential accordion options and credit enhancements aimed at lowering the cost of capital. This facility is expected to close in early 2026.
B. Riley has maintained a Buy rating on WhiteFiber's stock but trimmed the price target from $44 to $40 due to more conservative cloud-services assumptions. The stock closed near $17.62 recently, down more than 50% from its record high two months earlier, implying about 127% upside relative to the new $40 price target.
Valuation metrics show that WYFI trades at approximately 11x EV/EBITDA based on 2026 estimates and about 8x EV/EBITDA on the 4Q26 adjusted EBITDA run-rate, which is lower than peer multiples in the mid-to-high teens. The report highlights management’s strong execution and reaffirmed deployment timeline as positive indicators for the retrofit model's success.
