Analysts Just Made A Sizeable Upgrade To Their TeraWulf Inc. (NASDAQ:WULF) Forecasts

TeraWulf Inc. (NASDAQ:WULF) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. Could this be enough to reverse the market's pessimism for TeraWulf? Shares are down 5.6% to US$2.03 in the last 7 days.

After the upgrade, the four analysts covering TeraWulf are now predicting revenues of US$119m in 2024. If met, this would reflect a substantial 115% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 92% to US$0.028 per share. However, before this estimates update, the consensus had been expecting revenues of US$104m and US$0.066 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to next year's revenue estimates, while at the same time reducing their loss estimates.

See our latest analysis for TeraWulf

It will come as no surprise to learn that the analysts have increased their price target for TeraWulf 8.8% to US$3.70 on the back of these upgrades.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that TeraWulf's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 84% growth on an annualised basis. This is compared to a historical growth rate of 916% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% annually. Even after the forecast slowdown in growth, it seems obvious that TeraWulf is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for next year, reflecting increased optimism around TeraWulf's prospects. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, TeraWulf could be worth investigating further.

Analysts are definitely bullish on TeraWulf, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including major dilution from new stock issuance in the past year. You can learn more, and discover the 1 other flag we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.