JonesResearch raised its price target on TeraWulf Inc. (WULF) to $24 from $12, maintaining a Buy rating after updating its model to reflect recent business developments and hashprice trends. The firm noted that management remains on track with its HPC and AI hosting strategy, underpinned by the recent $3.2 billion senior secured notes issuance to fund Fluidstack lease build-outs.
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JonesResearch modestly increased their Q3 25 revenue estimate to $58.5 million and EBITDA to $14.2 million, up from $57.3 million and $13.0 million. This was driven by a stronger average hashprice of $0.056 per terahash versus the prior $0.055 estimate.
The firm valued TeraWulf’s announced and planned turnkey colocation leases totalling 886 MW—comprising 72.5 MW at Core42, 450 MW under Fluidstack, 227.5 MW at Lake Mariner and 136 MW at Cayuga Lake—at $13.85 billion using a 5.5% cap rate on projected NOI per megawatt.
After adjusting for $1.5 billion of incremental debt, the firm arrived at a residual equity value of $12.35 billion. On a pro forma share count of 517.9 million, this equates to $23.85 per share, which JonesResearch rounded to a $24 target.
At a current market capitalization representing about 52% of its estimated NAV, versus a 66% peer average, JonesResearch said TeraWulf remains significantly undervalued relative to its contracted and expansion-ready AI/HPC pipeline.
The $24 price target implies a 72% upside from WULF’s closing price of $13.93 on Friday.
Read More: Rosenblatt raises TeraWulf price target to $14.50, cites undervalued HPC pipeline
At time of publication, WULF is up 3.7% during pre-market hours.
