TeraWulf (NASDAQ:WULF) is up 3.9% in premarket trading after Citigroup initiated coverage with a "buy" rating and $36 price target. The firm cited the company's ability to address key power bottlenecks for AI data centers and its multi-year growth opportunities.
This bull note comes after WULF surged to a more than four-year high of $29.84 on June 22 before pulling back, with the shares now finding potential support at the rising 40-day moving average. Despite the recent dip, the stock is still up 124.8% year to date.
Analyst sentiment is already overwhelmingly optimistic, with the 17 covering brokerages rating WULF a "buy," with just one a "hold," and no "sell" recommendations. That leaves little room for additional upgrades, though today's Citi initiation reinforces Wall Street's confidence in the AI infrastructure name.
Short sellers continue to bet against the rally. Short interest represents a hefty 28.49% of the stock's available float. At WULF's average pace of daily trading, it would take nearly four days for bears to cover their positions.
