WULF Stock In Focus: William Blair Says TeraWulf’s Pullback Could Offer 'Favorable' Entry Point, Sees 100% Upside

• On Friday, William Blair initiated coverage of TeraWulf with an Outperform rating and a $31 price target, viewing the recent stock decline as a good buying opportunity. 
• The new price target implies a 102% upside potential to the stock’s last closing price.
• William Blair sees TeraWulf as a growing AI power provider, with new capacity and contracts potentially driving revenue growth.

TeraWulf Inc. (WULF) stock gained in premarket on Monday after William Blair launched coverage with an ‘Outperform’ rating. The firm sees the recent pullback as an attractive entry point, citing TeraWulf’s growing role in AI infrastructure and its potential to convert its backlog into contracted revenue. 

TeraWulf’s Power Strategy Takes Center Stage

On Friday, William Blair started coverage of TeraWulf with an Outperform rating and a $31 price target, implying nearly 102% upside potential to the stock’s last closing price. The firm believes the recent weakness in the bitcoin miner-turned-power provider’s stock has provided a favorable risk/reward entry point.

A William Blair analyst said TeraWulf has increasingly been seen as a power-focused infrastructure company serving the growing computing needs of major technology firms. The company now provides critical IT capacity to customers including Anthropic and Google, along with other hyperscale operators.

As more capacity comes online and the firm secures additional contracts, investors may assign a higher valuation multiple to TeraWulf. That could create another source of upside beyond underlying business growth.

TeraWulf stock inched 0.2% lower in Monday’s premarket. The stock has been declining for three straight months. 

TeraWulf Plans Up To $4.5 Billion Investment 

Last week, the Kentucky Public Service Commission approved TeraWulf’s electricity agreement for up to 482 MW at its Justified Data Campus in Hancock County, Kentucky. The company expects to spend about $4 billion to $4.5 billion on the site and its first data halls, excluding customers’ spending on computing equipment and other infrastructure.

Under the deal, TeraWulf will cover transmission, delivery and other power-related costs, along with customer-specific infrastructure expenses and credit requirements.

What WULF Retail Traders Are Saying 

On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory. 

A user said, “keep an eye on the Ratepayer Protection Act. Through House committee and awaiting it to be brought to vote on House floor. Could have a meaningful impact here. If a hyperscaler has to pay for the incremental grid infrastructure required to connect a huge new load, an existing site with substantial power infrastructure becomes more valuable.”

Another user said, “The AI bears keep yelling that power demand is overhyped and the energy names are already priced in. Meanwhile the actual experts (Jensen included) are saying this is the best time in the history of humanity to invest in sustainable energy - data centers going from ~6% to 20% of U.S. electricity by 2035.” 

WULF stock has gained over 33% year-to-date. 

Also See: 5 Consumer Stocks Bucked August Gloom With Double-Digit Gains: ANF, FIGS, EL, ABNB, DASH

For updates and corrections, email newsroom[at]stocktwits[dot]com