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Investing.com - Cantor Fitzgerald raised its price target on Core Scientific Inc. (NASDAQ:CORZ) to $26.00 from $18.00 on Friday, while maintaining an Overweight rating on the stock. The new target represents significant upside from the current price of $18.06, with analyst targets ranging from $17 to $31. According to InvestingPro data, the stock has shown remarkable strength with a 152% return over the past six months.
The price target increase comes as Core Scientific shareholders prepare to vote on October 30 on a proposed acquisition by CRWV. Under the proposed deal, CRWV has offered 0.1235 of its shares for each share of Core Scientific. The company, currently valued at $5.5 billion by market capitalization, maintains strong liquidity with a current ratio of 1.79x. InvestingPro analysis indicates the stock is trading above its Fair Value, with 10+ additional ProTips available for subscribers.
Based on CRWV’s recent closing price of $123.34, the offer implies a value of $15.23 per Core Scientific share, which is 16% below Core Scientific’s latest closing price.
Cantor Fitzgerald outlined two potential scenarios if shareholders reject the acquisition: CRWV could return with a revised offer, or Core Scientific could continue pursuing its high-performance computing (HPC) strategy independently.
The firm adjusted its valuation methodology for Core Scientific’s contract with CRWV, noting that unlike its peers whose future deals appear fully priced into their stock values, Core Scientific’s signed deal is not yet fully reflected in its share price.
In other recent news, Core Scientific Inc. has been in the spotlight due to several developments. The company released supplemental disclosures related to its pending merger with CoreWeave Inc., following multiple lawsuits from shareholders who claimed deficiencies in the proxy statement information. Despite this, CoreWeave is urging Core Scientific shareholders to support the merger, even as proxy advisory firms Institutional Shareholder Services and Glass Lewis have recommended voting against the deal. Roth/MKM has upgraded Core Scientific’s stock from Neutral to Buy, citing the standalone value of the company and assuming the merger with CoreWeave will not proceed. This upgrade also comes with an increased price target from $17.00 to $23.50. Roth/MKM’s analysis noted increased voting activity against the merger and CoreWeave’s statement that its bid was "best/final." As the October 30 special shareholder meeting approaches, these developments are critical for investors to consider.
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