Investment bank KBW upgraded TeraWulf (WULF) to “outperform” and raised price target to $24 from $9.50. Analysts believe the market is underestimating earnings upside from the company’s shift from bitcoin mining to AI and high-performance computing leasing. Shares were trading at $11.18. TeraWulf’s existing leases could drive a 505% EBITDA CAGR from 2025 to 2027, with HPC leasing pipeline supporting multiple expansion. HPC leasing expected to generate majority of revenue by 2026, with mining becoming immaterial by 2027. Execution risk is lower than assumed, with supportive debt markets and recent share price weakness attributed to sector-wide selling. Discounts should narrow as lease revenues scale in 2026, driving valuation upside.

Read more at Yahoo Finance: KBW upgrades TeraWulf to outperform, sees AI pivot as catalyst for sharp growth