WhiteFiber’s first long-term colocation agreement at its flagship NC-1 campus validates the company’s retrofit strategy, according to B. Riley.

In a report published Tuesday, the investment bank said the deal with Nscale Global supports management’s execution and adherence to its original deployment timeline. Analysts Nick Giles and Fedor Shabalin said the reaffirmed timeline underscores both operational discipline and the advantages of WhiteFiber’s retrofit model.

B. Riley reiterated its buy rating on WhiteFiber (WYFI) but lowered its price target to $40 from $44 to reflect more conservative assumptions for the company’s Cloud Services business. The revised target still implies roughly 127% upside from Monday’s close of $17.62. Shares are down more than 50% from their record high reached two months ago.

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

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