Domo signs strategic collaboration agreement with AWS for AI solutions
On Thursday, Cantor Fitzgerald analyst Brett Knoblauch raised the price target on Core Scientific Inc. (NASDAQ: CORZ) shares to $18 from the previous $16 while maintaining an Overweight rating on the stock. With the stock currently trading at $8.90, analyst targets range from $16 to $24, suggesting significant upside potential. According to InvestingPro data, the stock has shown strong momentum with a 155% return over the past year. Knoblauch’s optimism stems from the company’s recent performance and future prospects, noting that management’s comments during the quarter effectively addressed investors’ key concerns.
Core Scientific’s contracts with CoreWeave have been described as secure, and the company is seeing significant growth in its pipeline. Moreover, some of the company’s capacity is expected to become operational earlier than anticipated. While the company currently trades at a high EBITDA multiple of 30.4x, Knoblauch points out that with a fully diluted enterprise value of approximately $3.4 billion, the potential for returns outweighs the risks. InvestingPro analysis reveals the company maintains strong liquidity with a current ratio of 6.72, indicating robust short-term financial health.
The analyst believes that the infrastructure Core Scientific is developing, which CoreWeave is financing, will be valued at nearly twice what Core Scientific is currently worth. This valuation does not even take into account the substantial cash flow expected from leasing arrangements. Based on these factors, Knoblauch reiterates the Overweight rating and emphasizes that the price target increase is partially due to a re-rating higher of data center peers in the market.
Core Scientific, which operates in the blockchain and artificial intelligence sectors, has been working to expand its infrastructure and capacity to meet growing demand. The company’s strategic moves and the positive outlook from Cantor Fitzgerald suggest a strong confidence in its value proposition and market position.
Investors and market watchers will likely keep a close eye on Core Scientific’s performance in the coming months, especially in light of the anticipated earlier energization of some of its capacity and the growth of its customer pipeline. The raised price target by Cantor Fitzgerald reflects a positive sentiment that may influence market perceptions of Core Scientific’s stock.
In other recent news, Core Scientific Inc reported its first-quarter 2025 earnings, revealing a strategic shift from Bitcoin mining to high-density colocation infrastructure aimed at AI workloads. The company announced a revenue of $79.5 million, marking a 16% sequential decline, and an adjusted EBITDA of -$6.1 million. Despite the drop in revenue, Core Scientific ended the quarter with $780 million in liquidity. The company is planning to deliver 250 megawatts of capacity by the end of 2025 and is exploring mergers and acquisitions to expand its next-generation data center capacity. Analysts are paying close attention to Core Scientific’s pivot, with firms like Compass Point and Cantor Fitzgerald engaging in discussions during the earnings call. The company is also focused on executing its contract with CoreWeave, a key strategic partner, and anticipates significant growth in AI infrastructure demand. Core Scientific’s management highlighted the transformative impact of AI and their preparedness to meet the growing demand for high-density infrastructure.
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