Rothschild Redburn Initiates Coverage on TeraWulf with Neutral Rating
On September 22, 2026, Rothschild & Co Redburn initiated coverage of TeraWulf (NASDAQ: WULF) with a 'Neutral' rating and set a $15 price target. This implies an 11.8% downside from the reported reference share price of $17.01. The firm used discounted cash-flow modeling, factoring in a 23% cost of equity and 8% cost of debt to arrive at its valuation. Rothschild Redburn noted that TeraWulf's potential upside could come from additional U.S. capacity acquisitions or broader tenant signings but warned about risks such as permitting delays and state-level opposition affecting construction timelines. The firm also highlighted concerns in the credit markets, suggesting equity investors may be overlooking leverage risks among hyperscalers. TeraWulf reported $31.9 million in HPC lease revenue for Q2 2026, representing about 71% of its total revenue. It has significant construction underway at Lake Mariner and a major long-term lease with Anthropic covering up to 401 MW of capacity.
Tickers: $WULF
Topics: AI infrastructure HPC leasing Rothschild Redburn TeraWulf