KBW Upgrades TeraWulf, Predicts Strong Growth from AI Pivot
- KBW upgraded TeraWulf (WULF) to “outperform,” raising its price target to $24 from $9.50.
- Analyst Stephen Glagola noted the shift from bitcoin mining to AI and high-performance computing (HPC) leasing is underappreciated.
- TeraWulf’s existing leases could drive a projected EBITDA compound annual growth rate (CAGR) of 505% from 2025 to 2027.
- The firm anticipates that HPC leasing will account for over two-thirds of TeraWulf’s revenue by 2026.
- Recent share price movements reflect sector-wide trends rather than specific company fundamentals.
TeraWulf is expected to transition significantly toward HPC leasing, with a visible pipeline of 646 megawatts through the next few years, reducing reliance on bitcoin mining by as early as 2027.
With shares currently trading at $11.18, the anticipated shift in revenue sources highlights significant growth potential for TeraWulf as it pivots toward AI and HPC solutions. (Source)
