Compass Point initiates CoreWeave stock with Buy rating, $150 price target

Investing.com - CoreWeave (NASDAQ:CRWV) received its first analyst coverage on Thursday as Compass Point initiated the AI infrastructure company with a Buy rating and a $150.00 price target. The stock currently trades at $85.43, with analyst targets ranging from $36 to $234, according to InvestingPro data.

The firm highlighted CoreWeave ’s established relationships with major tech companies, noting that despite going public recently on March 28, 2025, the company already counts Microsoft among its customers.

CoreWeave’s revenue backlog reached $55.6 billion at the end of the third quarter of 2025, representing an 85% sequential increase from $30.1 billion in the second quarter, according to Compass Point’s analysis.

The backlog consists of $50.0 billion in remaining performance obligations plus $5.6 billion in additional amounts expected under committed contracts, including substantial deals with OpenAI ($22.4 billion committed) and Meta ($14.2 billion through 2031).

Nvidia, which holds a 7% stake in CoreWeave, has agreed to a $6.3 billion capacity backstop ensuring any unused GPUs continue generating revenue through 2032, a factor Compass Point cited as evidence of CoreWeave’s "durable" growth potential.

In other recent news, CoreWeave, Inc. announced an expansion of its revolving credit facility from $1.5 billion to $2.5 billion, with the maturity date extended to November 2029. This expansion is led by major financial institutions including JPMorgan Chase Bank, Goldman Sachs, and Morgan Stanley. CoreWeave reported third-quarter revenue of $1.4 billion, surpassing consensus estimates, with an adjusted operating margin of 15.9%. Despite exceeding revenue expectations, CoreWeave faced a downgrade from JPMorgan, which shifted its rating from Overweight to Neutral due to supply chain delays impacting revenue timing. Stifel reiterated its Hold rating with a $120 price target, acknowledging strong GPU demand as a positive factor. Macquarie adjusted its price target to $115, citing delivery delays affecting fourth-quarter performance, while BofA Securities lowered its price target to $140 due to supply constraints. CoreWeave’s fiscal year 2025 outlook was reduced by $150 million to $5.10 billion, with BofA noting these constraints are expected to be resolved by the first quarter of next year.

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