Applied Blockchain stock dips even after B. Riley initiates at Buy, sees 185% upside

Applied Blockchain (NASDAQ:APLD) shares are falling around 8% in Monday morning trading even after B. Riley analyst Matthew Key had started coverage on the data center operator with a Buy rating. Key also applied a price target of $10 per share, implying 185% upside from Friday's close, based on an enterprise/EBITDA multiple of 7x on his 2023 EBITDA estimate of $148M, according to a note Monday. Furthermore, "we believe the company will be a large beneficiary of not only digital asset miner demand but also growth in nascent markets like artificial intelligence, machine learning, and other blockchain networks," Key highlighted. Unlike bitcoin (BTC-USD) miners, Applied Blockchain (APLD) "will enjoy significantly less volatility in its financial results over the long term," as its performance is not directly linked to the value of BTC or the global network hash rate, the note said. Still, bitcoin's (BTC-USD -5.2%) ongoing swoon is likely pressuring APLD shares,