TeraWulf Inc (NASDAQ:WULF) shares are flying on Monday. BofA Securities initiated coverage on the stock with a Buy rating and a $34 price objective. Here’s what you should know.
- TeraWulf stock is at critical resistance. What’s behind WULF new highs?
BofA Initiates Coverage With Buy Rating
BofA Securities analyst Michael Funk started coverage of TeraWulf with a Buy rating and set a $34 price objective. The target is built on a 9.5x EV-to-revenue multiple applied to Funk’s 2028 revenue forecast, a multiple the analyst said sits in line with peers and reflects a balance between the company’s growth potential and the risks tied to financing and development.
Funk’s bullish view is rooted in TeraWulf’s pivot away from bitcoin mining toward high-performance computing infrastructure built for AI workloads under long-term contracted leases.
The analyst projects the company’s capacity pipeline will grow from 60 megawatts to over 1 gigawatt while revenue climbs from $226 million in 2026 to $1.06 billion in 2027 and $1.8 billion in 2028. Net operating margins are forecast to reach around 85% as adjusted EBITDA jumps from $63 million in 2026 to $686 million in 2027 and $1.25 billion in 2028.
Site Portfolio And Upcoming Milestones
According to the note, TeraWulf’s contracted capacity totaled 522 megawatts in the first quarter of 2026 across its Lake Mariner site in New York and the Abernathy joint venture in Texas. Funk flagged the completion of Lake Mariner buildouts by year end 2026 and a customer announcement for the Justified Data project in Kentucky as near term catalysts with that site expected online in the second half of 2027.
The analyst also referenced TeraWulf’s newly added Muskie Data site in eastern Kentucky which is expected to bring 500 megawatts online in the second half of 2028 with another 500 megawatts following by 2030.
Fluidstack Leases And Power Strategy
Funk highlighted TeraWulf’s lease agreements with Fluidstack which carry credit support from Google as a major factor strengthening the reliability of its revenue base. The analyst said robust AI demand combined with limited power availability across markets plays to TeraWulf’s strategy of choosing sites with existing high voltage transmission access which gives it a more predictable path to securing power.
Key Risks And Opportunities
Funk identified financing access along with construction delays and tenant timing as the biggest risks to the thesis with labor shortages supply chain issues and local opposition as secondary concerns. He estimated that a slowdown of 10% to 20% in megawatt delivery would lower 2028 revenue by about 6% to 12% and reduce adjusted EBITDA by as much as 12.3%.
On the upside, Funk pointed to accelerating AI infrastructure demand and the potential for TeraWulf to secure better contract terms such as longer lease durations higher rate escalators and credit backstops as it builds a stronger track record with major customers.
WULF Shares Are Jumping
WULF Price Action: TeraWulf shares were up 7.83% at $28.10 at the time of publication on Monday. The stock is trading at a new 52-week high, according to Benzinga Pro.
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