Compass Point analyst Michael Donovan has reiterated their bullish stance on WULF stock, giving a Buy rating today.
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Michael Donovan has given his Buy rating due to a combination of factors that highlight TeraWulf Inc’s strategic growth and financial potential. The company has rapidly expanded its contracted high-performance computing (HPC) footprint beyond New York, notably through a significant 25-year joint venture with Fluidstack in Abernathy, Texas. This deal, backed by a substantial Google lease, underscores the confidence in TeraWulf’s capabilities and positions it for further growth with the potential for additional phases and projects.
Furthermore, the financial metrics of the joint venture, including a strong implied revenue and net operating income, support the company’s robust financial outlook. Despite lower margins due to leasing arrangements, TeraWulf’s strategic use of both leased and owned sites enhances its pipeline expansion. With contracted HPC now exceeding 510MW, Donovan remains optimistic about TeraWulf’s execution capabilities, maintaining a Buy rating and a $17 price target, reflecting confidence in the company’s future performance.
Donovan covers the Financial sector, focusing on stocks such as TeraWulf Inc, Riot Platforms, and Bitfarms. According to TipRanks, Donovan has an average return of 41.5% and a 100.00% success rate on recommended stocks.
In another report released today, Oppenheimer also initiated coverage with a Buy rating on the stock with a $20.00 price target.