Intel stock spikes after report of possible US government stake
Investing.com - JMP Securities has reiterated its Market Outperform rating on Core Scientific Inc . (NASDAQ:CORZ), maintaining its positive outlook on the cryptocurrency mining company despite uncertainty surrounding its proposed acquisition. The company, currently valued at $4.4 billion, has seen its stock surge over 53% in the past year, with analyst price targets ranging from $15 to $23.
The firm noted that Core Scientific’s recent results indicate its strategic pivot toward high-performance computing (HPC) is progressing well and remains on track. This transition represents a key part of the company’s evolving business strategy. According to InvestingPro data, while the company isn’t currently profitable, analysts expect it to achieve profitability this year with forecasted earnings of $0.38 per share.
JMP highlighted significant uncertainty surrounding the proposed all-stock acquisition of Core Scientific by CoreWeave, citing intensifying opposition from shareholders, particularly Two Seas Capital, Core Scientific’s largest active shareholder.
The research firm suggested the outcome of the proposed acquisition likely depends on CoreWeave’s stock performance leading up to the shareholder vote and whether Core Scientific shareholders can negotiate stronger terms to address valuation and downside risk concerns.
JMP stated that executing the transaction at the existing 0.1235 exchange ratio with no collar would represent "an unambiguous win for CoreWeave shareholders," implying current terms may not adequately value Core Scientific.
In other recent news, Core Scientific announced an all-stock acquisition by CoreWeave, valuing the company at approximately $9 billion, or $20.40 per share. Shareholders of Core Scientific will receive 0.1235 shares of newly issued CoreWeave stock for each of their shares, and they are expected to own about 10% of the combined entity once the deal is finalized in the fourth quarter of 2025. The acquisition has sparked opposition from Two Seas Capital, Core Scientific’s largest active shareholder, who argues that the transaction undervalues the company and poses significant economic risks. Following the acquisition announcement, JMP Securities downgraded Core Scientific from Market Outperform to Market Perform, citing limited upside potential. Meanwhile, Bernstein SocGen Group has reiterated its Outperform rating on Core Scientific, maintaining a price target of $17.00. CoreWeave’s stock rating was also maintained at Underperform by DA Davidson, with a price target of $36.00. These developments highlight differing analyst perspectives on the future prospects of both Core Scientific and CoreWeave.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.