TeraWulf (WULF) has garnered increased attention from analysts, with one U.S. bank upgrading its price target and offering a bullish mining prediction. Keefe, Bruyette & Woods (KBW) upgraded TeraWulf from a "Market Perform" rating to "Outperform," significantly raising the price target from $9.50 to a Street-high of $24. This represents a 152.63% increase and signals strong confidence in the company's future. The upgrade follows Cantor Fitzgerald, who maintained an "Overweight" rating on TeraWulf with a price target of $18 the previous week.
The optimistic outlook is fueled by anticipation that investors are underestimating TeraWulf's strategic shift from Bitcoin mining to high-performance computing (HPC) leasing, expected in 2026 and 2027. KBW's analysis suggests existing leases could drive a 505% compound annual growth rate (CAGR) in earnings before interest, taxes, depreciation and amortization (EBITDA) through 2027. By 2026, HPC is projected to become TeraWulf's primary revenue source, potentially rendering mining operations irrelevant by 2027. TeraWulf is expected to have 646 megawatts of HPC project capacity by 2027.
The average price target for TeraWulf among 13 analysts is $22.17, with a high estimate of $26 and a low of $17. This average target implies a potential upside of 90.82% from the current price. The consensus recommendation from 13 brokerage firms is 1.8, indicating an "Outperform" status.
TeraWulf shares experienced a gap up following the KBW upgrade, opening at $11.81 compared to the previous close of $11.15. Recent trading saw shares around $11.47, up 2.78%, with a trading volume of 3,946,740 shares. The stock has demonstrated significant volatility. Over the past 12 months, shares have increased by 102.98%.
Despite the positive outlook, TeraWulf faces financial challenges. The company's next earnings report is on February 27, 2026, with analysts expecting a decrease in earnings per share to -$0.15 from -$0.08 in the same quarter last year. However, revenue is projected to increase from $34.98 million to $44.26 million. TeraWulf reported a quarterly EPS miss of (-$1.13) versus an estimated (-$0.04). The company has a negative net margin of -336.53% and a high debt-to-equity ratio of 4.45.
Analysts give TeraWulf a consensus rating of "Moderate Buy". Institutional ownership is substantial at approximately 62.5%, with insider ownership around 19.9%. TeraWulf's shift to AI infrastructure diversifies revenue and reduces reliance on Bitcoin's price volatility. This strategic move, highlighted by a major Fluidstack/Google deal, is expected to create a more favorable environment for continued growth. The AI data center market is projected to reach $93.60 billion by 2032, indicating a 23.83% CAGR, positioning TeraWulf for multi-year growth.
