Riot Platforms (RIOT), TeraWulf (WULF), and Mara (MARA) are positioned to benefit from continued demand for compute, with recent deals supporting the broader powered shell provider, or PSP, space, Morgan Stanley said in a Thursday research note.

The firm said Mara management remains confident it can secure a high-performance computing, or HPC, deal by year-end. Through its Starwood joint venture, Mara is also progressing lease discussions across multiple sites, with management saying it remains confident it can sign at least two leases before year-end.

Morgan Stanley said the recent TeraWulf transaction validates the progression it expected for the sector, with long-duration contracted cash flows, attractive revenue per watt, improving counterparty quality, and a valuation framework that increasingly looks more like infrastructure than Bitcoin mining.

The investment firm said the new Rockdale agreement represents the transaction that underpinned its Riot Platforms thesis at initiation, with the company converting a large block of controlled power into a long-duration HPC lease with economics near the high end of powered-shell precedents.

Morgan Stanley adjusted Mara's price target to $6 from $5.50, TeraWulf's to $62.50 from $72, and Riot Platforms' to $43 from $36.

Price: 20.36, Change: +0.04, Percent Change: +0.21