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Investing.com - Ladenburg Thalmann raised its price target on Core Scientific Inc. (NASDAQ:CORZ) to $24.50 from $22.50 on Wednesday, while maintaining a Buy rating on the cryptocurrency mining company. Core Scientific shares currently trade at $21.74, just 8% below their 52-week high of $23.63, following a strong return of 67% over the past year according to InvestingPro data.
The research firm cited expected growth in Core Scientific’s hashrate and potential revenues from High-Performance Computing as factors behind the increased target. Ladenburg Thalmann believes the current market valuation does not fully reflect the company’s ongoing power contracts and value creation potential. InvestingPro data shows analysts are generally bullish, with a consensus recommendation of 1.63 (Strong Buy) and price targets ranging from $17 to $40.
Despite Bitcoin price fluctuations following the recent halving of block rewards, the firm noted that Core Scientific’s break-even mining price remains well below current and expected Bitcoin prices, allowing for continued profitable operations. While the company wasn’t profitable over the last twelve months with a diluted EPS of -$2.15, InvestingPro analysis indicates analysts expect Core Scientific to turn profitable this fiscal year with an EPS forecast of $0.36. Discover more insights with the comprehensive Pro Research Report, available for Core Scientific and 1,400+ top US stocks.
Ladenburg Thalmann projects Core Scientific’s calendar 2027 revenues will reach $1.055 million, with non-GAAP cash earnings of $461 million or $0.92 per share. The new price target is based on a 35x multiple of estimated 2027 non-GAAP EPS, discounted back to present at 20%. This optimistic outlook comes despite current gross profit margins of just 10.21%, significantly below industry standards.
The firm’s analysis indicates Core Scientific’s improved balance sheet and earnings growth potential justify the higher valuation target for the Bitcoin mining company. The company maintains a reasonable current ratio of 1.58, suggesting adequate liquidity to meet its short-term obligations.
In other recent news, Core Scientific, Inc. announced that its shareholders did not approve the proposed merger with CoreWeave, Inc., resulting in the termination of the merger agreement. This decision was made after a special meeting of shareholders, where the necessary votes to approve the merger were not secured. Consequently, the merger agreement, initially signed in July 2025, has been terminated immediately. In related developments, Craig-Hallum has upgraded Core Scientific’s stock from Hold to Buy, setting a price target of $27.00. This upgrade reflects a shift in market sentiment towards companies involved in Bitcoin-to-AI infrastructure, highlighting the value of AI data center deals. Core Scientific plans to report the final voting results from the special meeting in a Form 8-K filing with the U.S. Securities and Exchange Commission. These recent developments indicate a significant change in the company’s strategic direction.
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