Freedom Capital initiates Terawulf stock coverage with buy rating

Freedom Capital has begun monitoring Terawulf Inc. (WULF) with a positive outlook, assigning the company a Buy rating and setting a price target of $19.00. The firm calculated a baseline value of around $14 per share for this Bitcoin mining and data center business. Throughout last week, Terawulf's shares hovered near this baseline, trading in the $16.51 range. The stock has demonstrated impressive performance, with returns of 79% over the past year and 44% for the current year-to-date period.

Key factors driving the buying recommendation include Terawulf's capacity expansion at its Justified Data Campus for Anthropic and the addition of power resources at its Lake Mariner site and other emerging campuses. The company has projected yearly capacity increases of 250 MW to 500 MW. This analyst target represents a substantial 36% potential gain from the current baseline level. However, Freedom Capital has indicated they will continue to reassess the investment as Terawulf executes its expansion plans.

Pro insights suggest the stock may be overvalued compared to its intrinsic value, with analysts projecting a 57% revenue growth for the year. Investors interested in a more detailed analysis can obtain a comprehensive Pro Research Report on WULF through InvestingPro. In contrast, TeraWulf Inc. recently reported a broader-than-expected loss for Q2 2026, with an adjusted loss per share of $1.94, significantly underestimating analysts' expectations of a 25-cent loss.

While revenue increased to $44.77 million from $34.0 million in the previous quarter, it fell short of the forecasted $46.52 million. The growth was mainly attributed to enhanced high-performance computing lease income.

Despite these financial challenges, S&P Global Ratings affirmed TeraWulf's credit rating at 'BB-' and updated the outlook from positive to stable, following the announcement of a 20-year, $19 billion lease with Anthropic for a new AI data center campus in Kentucky. Other analysts have also weighed in on TeraWulf, with William Blair initiating coverage with an outperform rating and Citi maintaining a Buy/High Risk rating.