B. Riley tightened AI/HPC forecasts last Tuesday and favored Core Scientific (NASDAQ: CORZ) and TeraWulf (NASDAQ: WULF) on valuation. Analyst Nick Giles' update followed a 34% average decline across the group from its June 22 peak through September 28.
Both carry Buy ratings. The note lists a $42 target for Core Scientific against a September 28 close of $16.52, implying 154% upside, and a $40 target for TeraWulf against $15.12, implying 165%.
Giles forecasts 2028 EBITDA of $1.01 billion for Core Scientific and $942.3 million for TeraWulf. Their capex-adjusted EV/EBITDA multiples are 19.9x and 18.7x, respectively, compared with larger, mostly private peers that B. Riley places in the mid-20s.
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The valuation adds estimated remaining construction capex to enterprise value. The two operators' 2028 estimates exclude uncontracted capacity and do not yet capture the full earnings run rate of contracted capacity.
"In our opinion, the group is pricing in currently contracted capacity on lower multiples, with a lower value also assigned to pipeline capacity," Giles wrote.
WhiteFiber (NASDAQ:WYFI) also ranks among Giles' preferred names at 6.3x estimated 2028 EV/EBITDA. Its Buy rating and $38 target imply 102% upside from its September 28 close of $18.83. Giles identified NC-1 project financing and further North Carolina leases as catalysts.
B. Riley estimates $29.2 billion still needs to be sourced for roughly 2,554 megawatts (MW) of contracted capacity across its coverage. Giles is watching whether project debt spreads hold and maturities lengthen toward lease terms.
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CleanSpark (NASDAQ: CLSK) priced senior secured notes due 2031 with a 7.875% rate and $2.276 billion in principal, at 98.5% of principal on September 18, leaving the firm as the only covered operator Giles identifies with no incremental funding need for currently contracted capacity. The offering closed September 25. CleanSpark said it provided a completion guarantee if proceeds fall short of finishing Sandersville.
