Rosenblatt Securities reiterated its Buy rating on TeraWulf (WULF) and lifted its 12-month price target from $12.00 to $14.50 in an October 2 research update, citing what it sees as an underappreciated HPC hosting pipeline.
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Rosenblatt projects TeraWulf’s revenue to climb from $183.1 million in 2025 to $923.3 million by 2027, while adjusted EBITDA is expected to surge from a slight loss of $1.7 million in 2025 to $531.9 million in 2027. Rosenblatt’s new target equates to 16x its 2027 EBITDA estimate, a small premium to peers due to WULF’s rapid growth in higher-multiple HPC services .
Rosenblatt pointed to a recent 400 MW addition through the Lake Cayuga acquisition as evidence of TeraWulf’s expanding capacity, but noted that the company has not formally disclosed further sites. The report argues this disclosure gap masks a robust pipeline and that, with its power expertise, TeraWulf is well-positioned to secure 150–200 MW of new HPC hosting contracts annually .
The firm contrasted WULF’s relative underperformance (up 21% over the past month versus a 44% gain for peers) with the flurry of multi-billion-dollar HPC deals in the sector. Rosenblatt views recent weakness as a buying opportunity, contending that anticipated capacity expansions are already priced into competitors but not fully reflected in TeraWulf’s valuation .
On valuation, the report highlighted TeraWulf’s 2025 EV/Revenue multiple of 17.7x, which falls to 3.5x by 2027, and its EV/EBITDA multiple compressing from an extreme negative into 6.1x in 2027. Rosenblatt believes these steep multiple declines underscore the company’s transition to profitability and justify a premium multiple on out-year earnings.
Rosenblatt also raised its forecasts for 2026 and 2027, reflecting growing confidence in TeraWulf’s ability to monetize its Bitcoin mining assets for HPC colocation. The firm emphasized that expanding AI demand, combined with TeraWulf’s capability to host both miners and HPC clusters, should drive meaningful upside.
WULF closed at $11.58 on Thursday, well below Rosenblatt’s $14.50 target and leaving 25% upside. The research note underscores key risks, including regulatory changes, financing dilution, and energy-cost volatility, but maintains that the market underestimates TeraWulf’s capacity growth and HPC hosting potential.
Read More: JonesResearch reiterates buy on TeraWulf, raises 2027 EBITDA to $547 million on Fluidstack deal
At time of publication, WULF was up 1% from yesterday’s close.
