Wells Fargo Initiates Coverage on Cipher with Overweight Rating
On September 17, 2026, Wells Fargo initiated coverage of Cipher (NASDAQ: CIFR) with an 'Overweight' rating and a $25 price target. This implies approximately 49.5% upside from the stock's prior close at $16.72. Analyst Eric Luebchow noted that while Cipher is considered high-risk/high-reward, its premium valuation over contracted net asset value suggests potential for growth if it successfully converts development projects into operational capacity. Wells Fargo estimated Cipher’s portfolio to have a net present value of around $10 per share and up to $12 when including unrestricted cash. The firm highlighted 493 MW in long-term leases with Amazon Web Services (AWS) and Fluidstack, supported by Google. These are expected to yield mid-teens returns on investment after delivery. Cipher also holds conditional ERCOT Batch Zero classifications for Texas data-center projects totaling 3.2 GW, though final interconnection approvals remain pending. The company must meet verification requirements from the Electric Reliability Council of Texas (ERCOT) by December 10 and April 9, 2027 to retain its project status. Cipher’s development pipeline includes 4.2 GW across seven sites in Texas, which has drawn regulatory scrutiny following an audit ordered by Governor Greg Abbott.
Tickers: $AMZN $CIFR $GOOG $WFC
Topics: analyst rating AWS Cipher data centers Google Wells Fargo