TeraWulf earns price target raise at Roth

Roth Capital Markets analyst Darren Aftahi raised his price target on TeraWulf (TeraWulf Stock Quote, Chart, News, Analysts, Financials NASDAQ:WULF) to $7.00 and maintained a “Buy” rating in a June 26 report, following meetings with company executives at Roth’s London Conference.

He said the CB1 facility could be ready earlier than expected in Q3, project financing may align with its completion, and customer interest is advancing. Aftahi also noted management is considering exiting the Bitcoin mining business within two years, signaling a strategic shift.

“We came away from our meeting with WULF management incrementally more positive, and believe the stock is set up well for near-term tangible catalysts,” Aftah said. “While WULF has already signed a lease with Core42, we believe CB1 completion could be the catalyst that lights the fuse for shares. Our conversations lead us to believe CB1 (20MW gross) could be completed earlier than expected (target was given for 3Q) along with project financing near or close to its completion. Project financing would aid a lower cost of capital base for WULF.”

Aftahi said CB1 is TeraWulf’s first large-scale high-performance computing facility and could serve as a “model home” for Core42 and other potential tenants. He said this may lead to further expansion from Core42 or new tenants at Lake Mariner. Management is currently running an RFP process for additional capacity, with interest described as “high,” suggesting TeraWulf is on track, or ahead of schedule—to secure more deals before year-end, as previously guided.

“Our general belief is that if CB1 was made operational and running seamlessly, that Core42 would eventually expand capacity with WULF,” he said. “Management remains steadfast in its target of 2-3 clients for Lake Mariner.”

Aftahi said management may exit the bitcoin mining business within two years, a shift in tone he sees as positive. It would expand TeraWulf’s high-performance computing potential and eliminate opportunity costs sooner.

“Prior conversations had been for transition ‘by the next halving,’ so this shows management’s ability to be flexible with its capacity, and a full appreciation for what frankly is a much better business model, in our view.”

Aftahi said investors should consider buying shares ahead of near-term catalysts and TeraWulf’s continued transition from bitcoin mining to a full high-performance computing infrastructure platform.

“We like risk/reward here, and raise our PT from $6 to $7, which implies ~21x EV/AEBITDA. While our multiple is on the more premium side, we do think near-term catalysts could eventually yield upside to our estimates over the medium-term (normalizing that implied forward multiple).”

Aftahi thinks that TeraWulf will generate $25.6-million in Adjusted EBITDA on $189.0-million in revenue for fiscal 2025, up from his prior estimates of $16.4-million and $173.5-million, respectively. He expects those figures to improve to $140.0-million in Adjusted EBITDA on $341.9-million in revenue in fiscal 2026, unchanged from his earlier forecast.

“We tweaked our 2H25 BTC price assumption back to $100k from $85k, which increases our 3Q/4Q25 estimates upward,” Aftahi said. “We have made no other model adjustments beyond that.”

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