According to Citi, Terrawolf stock still has room for further upside, even though it has already enjoyed a strong 12-month rally. The bank initiated a buy rating on the energy infrastructure stock. The price target is $36, implying a 39.4% upside from Friday’s closing price. TeraWulf has exploded in popularity, soaring more than 500% in the past year. The company, previously considered by many on Wall Street to be purely a cryptocurrency miner, has pivoted to providing energy infrastructure for high-performance computing systems used to develop artificial intelligence. WULF 1Y Mountain WULF 12 Month Chart Analyst Michael Rollins sees further momentum in the stock as HPC demand remains strong. “With power transmission remaining constrained in key metropolitan markets and community resistance to data centers (aka NIMBYism) increasing, supply constraints for large-scale deployments are not easing anytime soon. TeraWulf is one of several companies addressing potential bottlenecks,” he told customers. “While deployment is still in its early stages, TeraWulf has established a path to develop and commercialize 250 to 500 MW of data center capacity on an annual basis by rehabilitating and redeveloping industrial properties with existing power allocations from the grid to hyperscale data centers specifically targeting HPC/AI workloads,” he said. However, Rollins pointed out that TeraWulf does have some risks. These include the company’s ability to complete major projects on tight deadlines given the “expected rapid pace of development,” as well as financing risks. Still, he believes that “the valuation still does not reflect WULF’s multi-year growth opportunity.” Terrawolf stock rose more than 3% on Citi’s bullish call. Analysts are generally bullish on TeraWulf. All 17 people covering the stock rate it a “buy” or “strong buy,” according to LSEG data.
