Citigroup initiated coverage of TeraWulf (WULF) with a Buy/High-Risk rating. The bank established a $36 price target for the stock. TeraWulf shares rose in premarket trading following the announcement.
Citi highlighted TeraWulf’s strategy of redeveloping industrial sites with existing grid power into AI-focused data centers. This approach addresses current power transmission constraints and local opposition to new construction projects.
The firm’s outlook reflects TeraWulf’s potential to provide infrastructure for the artificial intelligence and high-performance computing (HPC) sectors. Analysts believe the company's valuation does not yet reflect long-term growth opportunities in the digital infrastructure market.