Core Scientific stock rating set at Market Outperform

On Thursday, JMP analysts initiated coverage on Core Scientific Inc . (NASDAQ:CORZ) with a Market Outperform rating and set a price target of $15.00. Currently trading at $10.78, the stock has shown remarkable strength with a 160% return over the past year. The firm highlighted Core Scientific’s significant growth potential following its emergence from bankruptcy earlier this year. According to InvestingPro data, analyst targets range from $15 to $23, with a strong buy consensus rating of 1.38.

Core Scientific, which operates in the high-performance computing (HPC) and Bitcoin mining sectors, has a substantial power capacity that JMP analysts believe could drive considerable shareholder value. With 1.3 gigawatts (GW) of contracted power capacity, the company is well-positioned to allocate 900 megawatts (MW) to its burgeoning HPC business while maintaining 400 MW for its established Bitcoin mining operations. With a market capitalization of $3.2 billion and a current ratio of 4.26, InvestingPro analysis indicates strong liquidity, though the company faces profitability challenges with negative EBITDA of $14.9 million in the last twelve months.

The analysts underscored the potential value of Core Scientific’s HPC business, which has a pipeline of 1.6 GW. They suggested that this segment of the company’s operations could significantly enhance the value of Core Scientific shares over time. The projected valuation for the HPC business alone could surpass $48.00 per share if it is fully deployed, as per the analysts’ assessment. Based on InvestingPro’s comprehensive analysis, which includes 12 key investment tips and detailed financial metrics, the stock currently shows a "FAIR" overall financial health score of 1.84.

Core Scientific’s strategic allocation of power capacity is seen as a key factor in its post-bankruptcy recovery. The company had successfully restructured and emerged from bankruptcy on January 16, 2024, and is now set to capitalize on its resources and market position.

The optimistic outlook from JMP analysts comes as Core Scientific aims to leverage its contracted power capacity to maximize growth and profitability in its dual business model. The Market Outperform rating reflects the analysts’ confidence in the company’s ability to outperform the broader market, given its current assets and business strategy.

In other recent news, Core Scientific Inc. reported its first-quarter 2025 earnings, highlighting a strategic shift towards high-density colocation infrastructure amid declining traditional Bitcoin mining operations. The company experienced a revenue drop to $79.5 million, a 16% sequential decrease, with an adjusted EBITDA of -$6.1 million. Meanwhile, Cantor Fitzgerald raised Core Scientific’s stock target to $18, citing optimism about the company’s performance and future prospects. The firm highlighted secure contracts with CoreWeave and anticipated earlier-than-expected operational capacity. Bernstein also maintained an Outperform rating with a $17 target, noting Core Scientific’s transition to a data center platform. In corporate governance, Core Scientific announced the appointment of Elizabeth Crain to its Board of Directors and the resignation of Todd Becker. Crain brings extensive financial sector experience, while Becker’s departure was not due to any disagreements. These developments reflect Core Scientific’s ongoing strategic adjustments and market positioning efforts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.