Terawulf stock price target raised to $12 by Northland on Google deal

Investing.com - Northland has raised its price target on Terawulf Inc. (NASDAQ:WULF) to $12.00 from $10.00 while maintaining an Outperform rating.

The analyst firm cited Terawulf’s recently announced 200 MW deal with Fluidstack and partnership with Google as a "game-changer," highlighting the $1.8 billion backstop that demonstrates strong confidence from a major AI industry player. Google, with its $2.46 trillion market cap and robust financial health score of "GREAT" according to InvestingPro, brings substantial backing to this partnership.

Northland believes the Google backstop significantly enhances Terawulf’s credit profile, enabling low-cost capital solutions aligned with the company’s growth plans to deploy 150-200 MW of new capacity annually.

The firm noted that under the "Recognition Agreement" disclosed in an 8K filing, Google has the option to either cover lease termination fees or assume the lease and pay all current rent, effectively positioning Google as both a guarantor and partial owner.

Northland’s analysis suggests Terawulf’s pro forma enterprise value could reach approximately $8 billion based on $400 million of NOI from Core42 and Fluidstack partnerships, implying an equity value of roughly $6 billion or $11.42 per share on a fully diluted basis.

In other recent news, Alphabet has been in the spotlight with several significant developments. A major highlight is the unsolicited $34.5 billion bid by AI search startup Perplexity to acquire Google’s Chrome browser, while Cantor Fitzgerald has maintained a Neutral rating on Alphabet’s stock with a price target of $201.00. In other developments, Google has introduced the Gemma 3 270M, a compact AI model designed for efficient AI applications, adding to its expanding Gemma family. Additionally, Google has launched a new feature called Preferred Sources, which allows users to customize their news experience by selecting favorite sources within Top Stories. This feature is initially available in the United States and India. In a strategic move, NTT Data Group has partnered with Google to develop AI agent services aimed at automating marketing and other business operations. Meanwhile, BofA Securities has reiterated its Buy rating on Alphabet with a price target of $217.00, as it considers potential Department of Justice remedy scenarios that could affect the company. These scenarios include a possible Chrome divestiture and changes to Google’s traffic acquisition cost payments.

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