Terawulf Inc. (WULF) PT Raised to $11 at Cantor Fitzgerald
Cantor Fitzgerald analyst Brett Knoblauch raised the price target on Terawulf Inc. (NASDAQ: WULF) to $11.00 (from $10.00) while maintaining a Overweight rating.
The analyst comments "/ HPC customer. While it was not our Base Case, shares were up 102.6% over the last month (vs. IWM +7.3%), which we believe is partially due to some customer expectations being priced in. WULF did not announce a customer, but it stated it is in "advanced discussions with potential tenants and expects to announce a customer before the end of the year." WULF is now in the best liquidity position it has been in as a public company. It ended the quarter with $24m of cash (after paying off existing debt) and has since raised a $500m convert, leading management to project a YE cash balance of $304m. Combining HPC capex and new mining rig purchases, WULF expects total capex in 2025E to be $364m. It is expecting to generate $100m of FCF in 2025E, customers to prepay $87m for its HPC capacity, and to raise $260m of project finance debt during the year, resulting in management projecting YE25 cash of $387m. We continue to believe WULF's Lake Mariner site is one of the most in-demand sites for AI/ HPC, with it expanding to 500 MW of capacity over the coming years. Our view is that WULF has enough demand today to potentially fill all future capacity it will have at Lake Mariner. Given our confidence in WULF signing customers at Lake Mariner, we continue to believe shares are attractive. We are reiterating our OW rating and are raising our PT to $11 (from $10)."