Citizens JMP reiterates Market Perform rating on CoreWeave stock

Investing.com - Citizens JMP maintained its Market Perform rating on CoreWeave (NASDAQ:CRWV), reflecting the firm’s assessment that the AI compute provider’s current valuation already captures much of its growth potential. According to InvestingPro data, the stock trades at notably high multiples, with an EV/EBITDA ratio of 52.6x, while experiencing an 8% decline over the past week.

The research firm’s analyst noted that CoreWeave operates a highly capital-intensive business model focused on providing compute capacity to large-scale customers in the artificial intelligence sector.

Citizens JMP acknowledged CoreWeave’s solid return potential and strategic positioning within the rapidly expanding AI infrastructure market.

Despite these positive attributes, the firm believes the company’s current market valuation already incorporates much of the anticipated upside from these growth factors.

CoreWeave specializes in providing the computational resources necessary for AI development and deployment to enterprise-scale customers.

In other recent news, CoreWeave announced plans to invest up to $6 billion in a new artificial intelligence data center in Lancaster, Pennsylvania. This facility will initially operate at 100 megawatts, with potential expansion to 300 megawatts, and is expected to create approximately 600 construction jobs and up to 175 full-time positions over time. In a strategic move, CoreWeave has agreed to acquire Core Scientific for approximately $9 billion in an all-stock transaction, a deal viewed positively by Mizuho (NYSE:MFG) for its potential cost synergies and financing flexibility. Despite this, Mizuho downgraded CoreWeave’s rating from Outperform to Neutral while raising the price target to $150.00. Similarly, Needham downgraded the stock from Buy to Hold, citing valuation concerns despite the strategic benefits of the Core Scientific acquisition. H.C. Wainwright maintained a Neutral rating on CoreWeave, acknowledging its technological leadership and strong relationship with Nvidia (NASDAQ:NVDA). CoreWeave has also become the first cloud provider to offer NVIDIA RTX PRO 6000 Blackwell Server Edition instances, enhancing its AI and graphics technology offerings. These developments underscore CoreWeave’s commitment to advancing its technological infrastructure and expanding its market presence.

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