Core Scientific stock price target raised to $22 by Jefferies on acquisition outlook

Published 18/08/2025, 11:06
Core Scientific stock price target raised to $22 by Jefferies on acquisition outlook

Investing.com - Jefferies raised its price target on Core Scientific Inc. (NASDAQ:CORZ) to $22.00 from $16.00 on Monday, while maintaining a Buy rating on the cryptocurrency mining company. The stock, currently trading at $14.13, has shown impressive momentum with a 40% return over the past year, according to InvestingPro data.

The price target increase follows Core Scientific’s second-quarter 2025 results, where the company missed revenue expectations but exceeded adjusted EBITDA estimates, according to Jefferies. The company’s financial health shows mixed signals, with strong liquidity (current ratio of 1.79) but challenging profitability metrics, including negative EBITDA of $54.59 million in the last twelve months.

The firm noted that investor attention remains primarily focused on the pending acquisition of Core Scientific by CRWV, which is expected to face a shareholder vote in the fourth quarter of 2025. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with additional insights available in the comprehensive Pro Research Report covering this $4.32 billion market cap company.

Jefferies pointed out that at CRWV’s current stock price of $99.97, the implied value for Core Scientific would be approximately $12.35 per share, which falls below what the firm considers a fair takeout price range of $16-23 per share.

The research firm suggested that if CRWV’s stock price remains around current levels when shareholders vote, there is a higher likelihood that the acquisition deal could be rejected.

In other recent news, Core Scientific is set to be acquired by CoreWeave in an all-stock deal valued at $20.40 per share, with the transaction anticipated to close in the fourth quarter of 2025. This agreement will see Core Scientific shareholders receiving 0.1235 shares of newly issued CoreWeave stock for each share they hold, ultimately owning about 10% of the combined entity. Despite the announcement, Two Seas Capital, Core Scientific’s largest active shareholder, has opposed the sale, arguing that it undervalues the company and exposes shareholders to significant economic risks. Following the acquisition news, JMP Securities downgraded Core Scientific from Market Outperform to Market Perform, citing limited upside potential. However, Bernstein SocGen Group has maintained its Outperform rating with a $17.00 price target, reflecting a positive outlook. JMP Securities had previously reiterated a Market Outperform rating, highlighting Core Scientific’s strategic shift toward high-performance computing as a positive development. These recent developments have sparked varied reactions among analysts and shareholders.

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