WULF Stock Climbs After New York Data-Center Moratorium Jolt — Why Wall Street Sees A Buying Opportunity

• New York imposed a one-year pause on new data centers larger than 50 megawatts, triggering a sharp selloff in WULF shares on Tuesday.
• Cantor Fitzgerald called the weakness a buying opportunity, maintaining an Overweight rating.
• Rosenblatt said the executive order creates more headline risk than operational risk, reiterating a Buy rating.

Shares of TeraWulf (WULF) recovered on Wednesday after an early decline, as Wall Street analysts said the market had overreacted to New York’s new data-center moratorium.

While TeraWulf came under pressure following the state’s decision, analysts stated that the policy creates limited near-term risk and maintained bullish ratings on the stock.

The WULF stock fell nearly 4% early on Wednesday, after dropping 7% on Tuesday. But the shares rebounded about 3.75% in afternoon trading and were up 1.9% at the time of writing on Wednesday afternoon.

Wall Street Sees Limited Risk For WULF

Cantor Fitzgerald said in a research note that New York’s data-center moratorium creates limited near-term risk for TeraWulf and presents a buying opportunity. The firm added that TeraWulf's existing leases remain unaffected by the policy, while the value of its contracted leases exceeds its current market valuation, according to TheFly.

Cantor Fitzgerald reiterated its ‘Overweight’ rating and $37 price target on the stock, implying an upside of nearly 91% from the WULF stock’s Tuesday close.

Rosenblatt reiterated its ‘Buy’ rating and $30 price target, implying around 55% upside from the stock’s last close. Rosenblatt said TeraWulf should be largely exempt from the policy and now has the majority of its power footprint outside New York, according to a report in Barron’s. The firm added that the selloff reflected more headline risk than structural risk because the enforcement mechanism “simply doesn’t reach the company’s existing NY platform.”

Earlier on Tuesday, Needham reiterated its ‘Buy’ rating and $33 price target on TeraWulf, saying the company’s Lake Mariner site would not be affected by New York’s moratorium. The price target implies an upside of 70% from the stock’s Tuesday close.

New York Moratorium Triggers Initial Selloff

TeraWulf shares sold off on Tuesday after New York Gov. Kathy Hochul ordered a one-year moratorium on constructing data centers larger than 50 megawatts. TeraWulf is uniquely exposed to the decision because its Lake Mariner data-center campus and under-development Cayuga site are both located in New York.

WULF Stock: What Stocktwits Retail Sentiment Says

On Stocktwits, retail sentiment for WULF was ‘extremely bullish,’ unchanged in the past 24 hours, while message volume was ‘high’ at the time of writing.

Over the past 30 days, message volume for the stock has surged 206%, while the ticker’s watcher base has risen 7.6% in the same period, indicating steady growth of retail interest in the stock.

The WULF stock has surged nearly 70% year-to-date.

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