B. Riley flags WhiteFiber NC-1 deal as a catalyst, forecasting 127% upside after stock rout

WhiteFiber’s first long-term colocation lease at its flagship NC-1 campus reinforces confidence in the company’s retrofit-driven growth strategy, according to B. Riley.

In a research note released Tuesday, the firm said the agreement with Nscale Global validates management’s execution and confirms that the original deployment timeline remains intact. Analysts Nick Giles and Fedor Shabalin said the milestone highlights both operational progress and the structural advantages of WhiteFiber’s retrofit model.

B. Riley reiterated its buy rating on WhiteFiber (WYFI) while lowering its price target to $40 from $44, reflecting more cautious assumptions around the Cloud Services business. The revised target still implies roughly 127% upside from the stock’s recent close of $17.62. Shares are down more than 50% from their all-time high reached about two months ago.

The analysts added that WhiteFiber is in advanced discussions with lenders to secure a construction financing facility expected to close in early 2026. The facility could feature an accordion option and credit enhancements, which may help reduce the company’s cost of capital.

On valuation, B. Riley said WhiteFiber is trading at about 11 times projected 2026 EV/EBITDA and around 8 times EV/EBITDA based on its fourth-quarter 2026 adjusted EBITDA run rate—levels the firm views as a notable discount to peers trading in the mid- to high-teens.