B. Riley lowered its price target on WhiteFiber Inc. (NASDAQ: WYFI) to $40 from $44 while maintaining a Buy rating, following updated assumptions tied to the company's first long-term co-location agreement.

The firm updated its outlook after WhiteFiber announced its inaugural long-term co-location agreement at the NC-1 data center campus with Nscale Global Holdings. While the deal took longer to finalize than initially expected, B. Riley said WhiteFiber's reaffirmation of its original deployment timeline underscored its execution capabilities and validated the company's retrofit-based development model.

Looking ahead, WhiteFiber disclosed that it was in advanced discussions with multiple lenders regarding a construction financing facility expected to include an accordion-style structure and targeted for completion in early first-quarter 2026. Management also indicated that potential credit enhancements could reduce overall funding costs, possibly with additional clarity on ultimate off-takers.

B. Riley said the upcoming capacity, expected to come online in under two quarters, supported WhiteFiber's speed-to-market thesis and positioned the company to expand across multiple sites. The firm modestly reduced its EBITDA forecasts to reflect updated deployment timing and more conservative Cloud Services assumptions, lowering its second-quarter 2026 EBITDA estimate to $17.9 million from $19.5 million and full-year 2026 EBITDA to $92.7 million from $99.5 million.

At current levels, WhiteFiber was said to be trading at approximately 11x EV/EBITDA on 2026 estimates and about 8x EV/EBITDA on a fourth-quarter 2026 run-rate basis, representing a notable discount to peer valuations in the mid- to high-teens.