TeraWulf Rallies 15% After Morgan Stanley Initiates at Overweight With $37 Target
TeraWulf shares climbed as Morgan Stanley started coverage with an Overweight rating and $37 target, applying an $8-per-watt valuation for uncontracted data-center sites. The base case forecasts 125 MW of growth by 2032 and a bull case pegs 187.5 MW, Needham, Keefe Bruyette set targets at $21 and $24.
1. Morgan Stanley Initiates Coverage
Morgan Stanley initiated coverage of TeraWulf with an Overweight rating and a $37 price target, triggering a roughly 15% share rally. The firm cited the company’s track record in securing data-center agreements and praised its management’s infrastructure expertise.
2. Valuation Framework and Price Target
Analysts applied a “REIT endgame” framework to TeraWulf’s Bitcoin-to-data-center transition, estimating that sites without signed conversion contracts could be worth about $8 per watt. This valuation underpins the bank’s bullish outlook and substantial implied upside.
3. Growth Projections and Scenarios
In its base-case scenario, Morgan Stanley projects TeraWulf will add about 125 MW of data-center capacity annually by 2032. The bull case assumes roughly 187.5 MW per year, reflecting stronger execution and faster conversion of power assets.
4. Broader Analyst Sentiment
Other firms have also raised outlooks, with Needham setting a $21 target and Keefe Bruyette raising its target to $24. Cantor Fitzgerald and B. Riley maintain Overweight/Buy ratings, and shares trade near $16.42, closing in on the 52-week high of $17.05.