TeraWulf Inc, listed on NASDAQ under the ticker WULF, experienced a notable uptick in its stock price on Monday. This activity coincided with Morgan Stanley's announcement to commence coverage of the company, assigning it an Overweight rating alongside a price target of $37, a figure that anticipates significant appreciation from existing levels.
The investment bank's initiation sheds light on TeraWulf's core strengths, particularly its established ability to secure agreements with data-center clientele. Morgan Stanley's analysis underscores the company's management team, highlighting their extensive experience in constructing large-scale power infrastructure. Such expertise is foundational to TeraWulf's operational and strategic endeavors, especially as the enterprise evolves its business model.
Central to Morgan Stanley's valuation is the application of a "REIT endgame" framework geared towards TeraWulf's adaptation from Bitcoin mining operations to data-center facilities. Through this lens, locations not yet under conversion contracts were appraised with an estimated value near $8 per watt. This metric reflects an innovative perspective in assessing the company's asset base and prospective revenue streams.
Looking ahead, Morgan Stanley developed growth scenarios extending through 2032, presenting varied trajectories based on expansion rates. The base case envisions TeraWulf achieving approximately 50% of its planned annual data-center growth target of 250 megawatts between 2028 and 2032. In a more optimistic bullish scenario, the company could realize roughly 75% of these ambitions, thereby approaching the upper threshold of a 500-megawatt yearly increase.
Complementing Morgan Stanley’s assessment, recent analyst activity has displayed a positive sentiment toward WULF shares. On February 3, Needham reaffirmed a Buy rating, setting their target price at $21. This decision followed an earlier upgrade from Keefe, Bruyette & Woods dated December 31, which elevated its rating to Outperform with a significant price target increase from $9.50 to $24.
Additional noteworthy analyst evaluations include Cantor Fitzgerald, which maintained an Overweight rating with an $18 target as of December 23. Moreover, B. Riley Securities continued its Buy stance, adjusting its target upward to $23 from $22 on November 12. Needham also reiterated its Buy rating with a $21 target on November 11, further solidifying the positive outlook among investment professionals.
The stock price itself reflected this bullish momentum. At the time of reporting on Monday, TeraWulf shares had increased by approximately 14.91%, reaching $16.42. This surge brings the stock close to its 52-week high of $17.05, demonstrating renewed investor confidence. Market data sourced from Benzinga Pro confirms these price metrics.
This recent rally aligns with broader market interest in TeraWulf’s evolving business approach and growth potential, reinforcing the company's position within the intersection of cryptocurrency infrastructure and data-center development.