TD Cowen Starts TeraWulf Coverage With $21 Buy-Rated Target

what happened

Stocktwits reports that TD Cowen initiated coverage of TeraWulf (WULF) with a Buy rating and a $21 price target. TheFly cited analyst Michael Elias as saying investors were undervaluing the company’s expanding artificial-intelligence data-center operation. The target represented roughly 52.5% upside from Friday’s close of $13.77.

Elias said the AI “boom” could support a higher valuation for TeraWulf over time. He argued that the market was pricing the company’s data-center leases too conservatively, using a 9% capitalization rate even though the underlying risk was lower than that figure indicated. Fluidstack, a cloud provider serving AI companies, is a major tenant. Under the deal, Google received warrants that could amount to an estimated 8% stake in TeraWulf.

TeraWulf built its business around Bitcoin mining and has been converting its sites into data centers for AI customers. The shares traded nearly 1% higher in Monday’s premarket session. Stocktwits said retail sentiment moved from “extremely bullish” to “bullish,” while discussion volume shifted from “low” to “normal” over the past day.

Koyfin data shows an average 12-month target of $33.58 among 24 analysts, implying about 144% upside from Friday’s close. TD Cowen’s target is roughly 37% below that average. Last week, Morgan Stanley raised its target to $65 from $63. TeraWulf remains about 54% below its 52-week high of $29.84, although the stock is up nearly 20% this year.

why it matters

The report highlights a shift in how investors may assess TeraWulf, from a Bitcoin-mining company toward an AI infrastructure operator. Analyst targets show a wide range of views on that transition.

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