WULF, CORZ, CLSK Stocks Get A Thumbs Up From B. Riley – MSTR Sees A Price Target Cut

Given historical rebound patterns and attractive valuations, analyst Nick Giles said the recent selloff in HPC-linked mining stocks was overdone.

• B. Riley raised price targets on Hut 8, Core Scientific, TeraWulf and CleanSpark
• The firm has 'Buy' ratings on all four names, citing better AI sentiment, attractive valuations and history of strong recoveries after similar pullbacks.
• However, B. Riley lowered its price target on Strategy to $155 from $215.

B. Riley issued a set of crypto and high-performance computing (HPC) notes on Monday, raising the price targets on four Bitcoin (BTC) miners shifting to AI infrastructure, while slashing the target of a pure crypto player.

Analyst Nick Giles increased price targets on Hut 8 (HUT) to $163 from $130, Core Scientific (CORZ) to $42 from $33, TeraWulf (WULF) to $40 from $32, and CleanSpark (CLSK) to $26 from $19, keeping ‘Buy’ ratings on all four. 

The pullback in HPC stocks recently on AI spending concerns and macro pressures was overdone, and strong historical recovery patterns, improving AI sentiment, and supportive valuation dynamics set up a strong rebound, Giles said.

CORZ Stock Leads Among All Four HPC Stocks

CORZ stock led the group, trading up over 7% during mid-morning trade, followed by WULF stock up over 6%, CLSK stock up over 5%, and HUT stock up over 4% in the midday trade. 

On Stocktwits, retail sentiment was split. CORZ remained in the 'extremely bullish' zone, CLSK and HUT were both in the 'neutral' zone, and WULF was in the 'bearish' zone over the past day. 

One user on the platform said that compute scarcity is becoming a reality, arguing that companies needing high-performance computing capacity will ultimately be willing to pay a premium for it.

Strategy Sees Price Target Cut As Bitcoin Sale Resumes

B.Riley also cut the price target on Strategy (MSTR) to $155 from $215. The firm also lowered the Bitcoin price it used to model Strategy's valuation to $65,000 from $81,500, a 25% drawdown since the first quarter, and also reduced the multiple it assigned to the stock.

According to B. Riley, Strategy no longer commanded a premium over its underlying Bitcoin holdings because buybacks and "capital preservation" have replaced the company’s "prior accumulation flywheel." 

This came on the same day Strategy confirmed it had sold  1638 BTC for $104.73 million, ending a four-week sales pause. Proceeds were used to fund preferred stock dividends and to buy back Stretch Preferred Stock (STRC) shares, the company said.

MSTR stock was up over 2% during midday trade. On Stocktwits, retail sentiment around MSTR remained in the ‘bearish’ zone, while chatter stayed at ‘normal’ levels over the past day.

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