9 hours Ago
Nvidia-backed cloud company CoreWeave is grabbing the attention of several analysts, with some making bullish calls. On the first day of trading this month, the stock soared almost 42% above its initial public offering following an underwhelming start with its trading debut. CoreWeave officially debuted on the Nasdaq in late March, closing flat on its first trading day.
Since making its debut, CoreWeave shares have struggled. In the past week alone, the stock has fallen more than 13% compared to the S & P 500's loss of more than 4%. It has fared a bit better than the broader market this month, posting a month-to-date loss of more than 4%.
That's nearly half the S & P 500's drop of just over 8%. Shares were more than 2% higher in the premarket Tuesday after a number of analysts initiated coverage on the stock. Here's what a few of them had to say.
Barclays: rated overweight with a $48 price target Analyst Raimo Lenschow's target implies more than 35% upside from Monday's close. "We see a large TAM (~$399bn for Training and Inference) and the very large growth rates for CRWV (68% revenue CAGR between 2024-2027) as evidence of this exciting opportunity. As with all new market segments (remember the Facebook IPO), there are many aspects (large depreciation numbers due to high Capex, debt financing of new projects) that are new to Tech investors, and as a result will take time to get comfortable with.
However, we think the time to market advantage and close relationship with Nvidia (covered by Tom O'Malley) will enable CoreWeave to be a successful player in this space, and see current levels as an attractive entry point." JPMorgan: rated overweight with a $43 price target Analyst Mark Murphy's target reflects more than 21% upside ahead. "There could be a wide range of outcomes for CoreWeave.
For this reason, we expect the stock to provide a wild, lumpy, volatile ride, requiring a risk tolerance that may not exist for most investors. If we end up with heightened economic volatility, CRWV shares would probably suffer disproportionately due to risk-off positioning. However, our sense is that investors are pricing in the glass-half-empty view more than the other view, represented by a 16x EV/CY26E PF EBIT multiple for a company projected to grow 140% in the expansive AI market.
" Goldman Sachs: rated neutral with a $54 price target Analyst Kash Rangan's target calls for more than 52% upside from here. "CoreWeave is indexed towards the current overhangs of the broader market, including tariffs, AI skepticism, and caution in underwriting debt-heavy growth companies. While our growth estimates underwrite the path CoreWeave can take to continue to scale (supported by over $26bn in RPO and a ratable revenue model), we understand that given the company's relative short operating history and current macro uncertainty, we expect it will need to deliver consistent execution to sustainably break out of its current range.
" Jefferies: rated buy with a $51 price target Analyst Brent Thill's target implies about 44% upside potential. "We believe we're still in the very early innings of this buildout for AI, and CRWV being one of the few who has been able to scale & host AI compute reliably, is positioned well to capture this opportunity. While there are concerns over the durability of CRWV's business model, we believe that the unrelenting appetite for AI compute minimizes the downside risks.
" Citi: rated neutral/high risk with a $43 price target Analyst Tyler Radke's target sees more than 21% upside from the latest close. "CRWV's explosive growth (FY25 revenue of $4.6B, +140%) has been driven by strong demand from a highly concentrated customer base (MSFT at 64% of FY24 revenue and OpenAI).
While we are impressed with the growth and first-mover advantage, there are factors that lead us to believe the stock will remain rangebound after a strong offering followed by tariff uncertainty." Bank of America: rated buy with a $42 price target Analyst Brad Sills' target implies more than 18% upside ahead. "The CoreWeave Cloud Platform has been purpose built for GPU compute to support AI service providers (e.
g., Microsoft, OpenAI and NVIDIA). We see room for sustained share gains in the large AI IaaS industry, forecasted to reach $79 billion in 2028 (per Gartner), +62% 3-year CAGR, significantly outpacing the general purpose cloud IaaS at 21%.
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