Rosenblatt raises TeraWulf price target to $14.50, cites undervalued HPC pipeline

Core Viewpoint - Rosenblatt Securities maintains a Buy rating on TeraWulf (WULF) and raises its 12-month price target from $12.00 to $14.50, highlighting an underappreciated HPC hosting pipeline [1] Revenue and EBITDA Projections - TeraWulf's revenue is projected to increase from $183.1 million in 2025 to $923.3 million by 2027, with adjusted EBITDA expected to rise from a slight loss of $1.7 million in 2025 to $531.9 million in 2027 [2] Capacity Expansion and Market Position - The recent acquisition of 400 MW through Lake Cayuga is cited as evidence of TeraWulf's expanding capacity, with expectations to secure 150–200 MW of new HPC hosting contracts annually [3] - TeraWulf's relative underperformance (up 21% over the past month) compared to peers (up 44%) is viewed as a buying opportunity, as anticipated capacity expansions are not fully reflected in TeraWulf's valuation [4] Valuation Metrics - TeraWulf's 2025 EV/Revenue multiple is 17.7x, decreasing to 3.5x by 2027, while its EV/EBITDA multiple is expected to improve from a negative value to 6.1x in 2027, indicating a transition to profitability [5] Forecast Adjustments - Rosenblatt has raised its forecasts for 2026 and 2027, reflecting increased confidence in TeraWulf's ability to monetize its Bitcoin mining assets for HPC colocation, driven by expanding AI demand [6] Current Market Position - WULF closed at $11.58, which is below Rosenblatt's target of $14.50, indicating a potential upside of 25% [7]