** Data center operator Applied Digital's shares rise 1.6% to $7.42 premarket

** Brokerage H.C. Wainwright raises PT on company's shares to $10 from $5, representing an upside of 37%

** Brokerage believes higher valuation multiple is fair given the step-up in sales expected from the 400 megawatt Ellendale site

** APLD last week reported Q1 revenue of $60.7 mln vs est $54.9 mln - LSEG

** As of last close, stock up ~8% so far this year

(Reporting by Akash Sriram in Bengaluru)

((Akash.Sriram@thomsonreuters.com; ))