TeraWulf (WULF) Gets a Buy Rating and Price Target of $6
Needham analyst John Todaro initiated coverage on TeraWulf Inc (WULF) with a Buy rating and a price target of $6.
Todaro believes TeraWulf is a top contender for converting data center capacity to High-Performance Computing (HPC). He sees HPC as a high-margin, growing revenue opportunity for TeraWulf.
Here are some key takeaways from Todaro’s analysis:
- HPC is a big deal for TeraWulf. It offers long-term contracts, providing revenue and margin transparency.
- TeraWulf is poised to be an early mover in HPC, bringing a 100MW+ site online soon.
- TeraWulf’s sites are optimized for HPC, potentially leading to lower capital expenditure (capex) compared to competitors.
- Todaro projects TeraWulf will generate $610 million in revenue in 2026, with $350 million coming from HPC.
- The analyst forecasts a 56% adjusted EBITDA margin for TeraWulf.
- The $6 price target reflects a 12.5x EV/EBITDA multiple based on Todaro’s 2026 estimates.
While TeraWulf is positioned for growth in the HPC market, investors should consider the risks associated with any investment.
