KBW upgrades TeraWulf (WULF) to outperform, sees AI pivot driving sharp growth
KBW upgraded TeraWulf to "outperform" and raised its price target to $24, citing significant growth from its pivot to AI/HPC leasing.Summary
Investment bank KBW upgraded TeraWulf (WULF) from "market perform" to "outperform" and significantly increased its price target from $9.50 to $24. The upgrade is based on the belief that the market is underestimating the earnings potential from TeraWulf's strategic shift away from Bitcoin mining toward AI and high-performance computing (HPC) leasing.
Analyst Stephen Glagola noted a robust HPC leasing pipeline of 646 MW through 2027 and projected that existing leases could drive a 505% EBITDA compound annual growth rate (CAGR) between 2025 and 2027, supporting multiple expansion. KBW expects HPC leasing to constitute two-thirds or more of TeraWulf's revenue in 2026, with mining becoming largely immaterial by 2027.
The report suggests that execution risk is lower than investors perceive, supported by secured financing and a strong delivery track record. KBW believes recent share price weakness is due to sector-wide selling among bitcoin miners, not company fundamentals, and anticipates valuation upside as lease revenues scale in 2026.
(Source：CoinDesk)