US financial institution Upgrades TeraWulf Value Goal, Affords Bullish Mining Prediction

Funding banking firm Keefe, Bruyette & Woods has turned extra bullish on Bitcoin miner TeraWulf, citing what it sees as a looming shift within the firm’s enterprise combine that buyers have but to completely worth in.

In a Wednesday report, KBW stated it upgraded TeraWulf (WULF) to “outperform” from “market carry out” and raised the corporate’s share worth goal to $24 from $9.50. 

In accordance with the financial institution, the reassessment was primarily based on buyers “underappreciat[ing] the magnitude of the BTC mining to HPC [high-performance computing] leasing combine shift in 2026-2027 and strong progress catalysts on 646MW web of seen HPC leasing pipeline by 2027.” 

At time of writing, TeraWulf shares had been buying and selling at $11.46, having risen about 2.8% within the earlier 24 hours. Shares of MARA Holdings (MARA), one other important Bitcoin (BTC) miner, dropped about 2.4% over the identical interval, whereas Riot Platforms (RIOT) rose 0.8%.

Associated: Bitcoin mining’s 2026 reckoning: AI pivots, margin strain and a combat to outlive

Securing financing for build-outs driving bullish views?

Along with BTC mining, KBW stated TeraWulf’s joint AI-HPC technique had been driving the corporate’s working profitability.

“We estimate current leases drive a +505% 2025-2027 EBITDA [Earnings Before Interest, Taxes, Depreciation, and Amortization] CAGR [Compound Annual Growth Rate] and optimistic inflection in pre-tax ROIC [Return on Invested Capital], enabling a number of enlargement on the present 3.8x EV/EBITDA a number of on our avenue excessive 2027 estimate,” stated KBW, including:

“We predict the first offender of WULF’s -34.6% decline from its 52-week excessive on 10/28 has been the largely indiscriminate promoting of Bitcoin mining shares […] towards weakening Bitcoin mining fundamentals.”

In October, TeraWulf reported a $3.2 billion deal as a part of an information heart enlargement for one in every of its New York services. The corporate additionally secured three lease agreements with AI infrastructure supplier Fluidstack, value a mixed $6.7 billion.