Data-center developer TeraWulf rises after BofA initiates at 'buy'

Morgan Stanley

Mon 16:18

** TeraWulf's shares WULF.O up 4.6% at $27.26 and hit new one-year high on Mon after BofA Global Research starts coverage with 'buy' rating
** Brokerage sets price objective at $34, implying 30% upside to stock's last close
** BofA cites WULF's successful transition from bitcoin mining to developing digital infrastructure for high-performance compute (HPC) required to meet "the explosion" in AI demand
** WULF's development pipeline expected to scale to 1.8GW to 3.0GW by 2030 from 522MW contracted today, BofA says in note
** Data center demand shows no sign of slowing, BofA says, adding while traditional non-AI related demand continues to grow, AI training demand is accelerating, and AI inference demand is projected to grow at an even faster rate
** Of 17 brokerages covering WULF, 5 rate "strong buy", 12 "buy"; median PT $32, per LSEG data
** BofA was a joint bookrunner on WULF's $900 mln stock offering in Apr
** WULF stock now up ~137% YTD and has surged more than sixfold over the past 12 months

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))