TeraWulf Inc (NASDAQ:WULF) shares are trading higher on Monday. Morgan Stanley initiated coverage of the company with an Overweight rating and a $37 price target. Here’s what you might want to know.
Why Morgan Stanley Is Bullish
Morgan Stanley's new coverage comes with a price target that implies substantial upside from current levels, Investing.com reported. The firm highlighted TeraWulf's strong history of securing agreements with data‑center customers and praised the management team's deep experience in building large‑scale power‑infrastructure assets.
To value the company, Morgan Stanley applied a "REIT endgame" framework to TeraWulf's Bitcoin‑to‑data‑center transition strategy, estimating that sites without current conversion contracts could ultimately be worth about $8 per watt.
Growth Scenarios Through 2032
In its base case, the bank assumes TeraWulf hits roughly half of its targeted annual data‑center expansion of 250 MW per year between 2028 and 2032. In its bull case, TeraWulf reaches roughly 75% of its targets and approaches the high end of its 500 MW yearly growth plan.
Analyst Sentiment Remains Positive
Recently, WULF has been attracting considerable attention from other analysts as well, with the overall trend being positive. On Feb. 3, Needham reiterated its Buy rating for WULF, setting a target of $21.00. This followed a significant upgrade from Keefe, Bruyette & Woods on Dec. 31, which raised its rating to Outperform, with a notable target increase from $9.50 to $24.00.
Other important analyst actions include Cantor Fitzgerald, which maintained its Overweight rating and set a target of $18.00 on Dec. 23. B. Riley Securities also held its Buy rating steady, with a target increase to $23.00 from $22.00 on Nov. 12. Furthermore, Needham reiterated its Buy rating and set a target of $21.00 on Nov. 11.
WULF Price Action: TeraWulf shares were up 14.91% at $16.42 at the time of publication on Monday. The stock is approaching its 52-week high of $17.05, according to Benzinga Pro.
Image: Piotr Swat/Shutterstock.com
