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Investing.com - Rosenblatt Securities raised its price target on Terawulf Inc. (NASDAQ:WULF) to $12.00 from $10.50 on Friday, maintaining a Buy rating on the bitcoin mining company’s stock. The new target aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $6.50 to $14.00, with a strong Buy consensus rating of 1.36.
The price target increase follows what Rosenblatt describes as "transformational" high-performance computing (HPC) hosting agreements with Fluidstack and a related investment from Google (NASDAQ:GOOGL), which now owns 14% of Terawulf. The company, currently valued at $3.58 billion, has shown impressive revenue growth of 19.8% over the last twelve months.
Rosenblatt views Terawulf as "one of the leading HPC data center providers in the U.S." and notes that the Google investment has "improved dramatically" the company’s financial profile. According to InvestingPro analysis, the stock has demonstrated strong momentum with a remarkable 125% return over the past six months, though investors should note its high beta of 4.18 indicates significant volatility. Get access to 16 additional ProTips and comprehensive analysis with an InvestingPro subscription.
The firm highlighted that Fluidstack has exercised its option for an additional 160 MW of capacity, expected to come online in the second half of 2026, which adds "further upside" to Rosenblatt’s earnings estimates.
Terawulf’s successful convertible offering, which fully funds the equity portion of required capital expenditures, was also cited as a factor in Rosenblatt’s decision to apply a premium valuation, with the new price target based on 13 times the firm’s 2027 Adjusted EBITDA estimate.
In other recent news, TeraWulf Inc. announced its intention to offer $400 million in convertible senior notes due 2031, with an additional option for purchasers to acquire up to $60 million more. This move is subject to market conditions and other factors. Google has increased its financial backstop to approximately $3.2 billion and expanded its potential equity stake in TeraWulf to about 14%. This development is linked to a new lease agreement, under which Google will support debt financing for the expansion of TeraWulf’s Lake Mariner data center campus. Fluidstack, an AI cloud platform, has also expanded its presence at the Lake Mariner campus, adding 160 megawatts of critical IT load through a new facility, with operations expected to commence in the second half of 2026. Cantor Fitzgerald raised its price target for TeraWulf to $14 from $11, maintaining an Overweight rating on the stock. The price target increase suggests potential upside based on the company’s current market capitalization and enterprise value. These recent developments highlight significant financial and operational growth for TeraWulf.
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