Core Scientific stock rating upgraded to Buy by H.C. Wainwright

Investing.com - H.C. Wainwright upgraded Core Scientific Inc. (NASDAQ:CORZ) from Neutral to Buy and set a price target of $25.00 on Tuesday. The stock, currently trading at $19.87 with a market capitalization of $6.16 billion, sits within the broader analyst target range of $17-$31.

The upgrade follows recommendations from proxy advisory firms ISS and Glass Lewis, who both issued "against" votes regarding the proposed acquisition of Core Scientific by CoreWeave (CRWV) scheduled for October 30. According to InvestingPro data, Core Scientific maintains strong financial health with liquid assets exceeding short-term obligations and a healthy current ratio of 1.79.

H.C. Wainwright cited Core Scientific’s proven competencies as the basis for the upgrade, including its ability to develop compute-focused infrastructure quickly and at low cost, its technical expertise in artificial intelligence compute builds, and its track record in customer acquisition and support.

The firm highlighted the original $10.2 billion, 12-year HPC hosting deal with CoreWeave as the foundation of the opportunity for Core Scientific, noting the company’s speed-to-market capabilities.

H.C. Wainwright was the first to upgrade Core Scientific following its bankruptcy emergence on January 25, 2024, demonstrating the firm’s long-standing confidence in the company’s business model.

In other recent news, Core Scientific reported a third-quarter revenue of $81.1 million, a decrease from $95.4 million in the same period last year. The company also posted a net loss of $146.7 million for the quarter, which is an improvement compared to the $455.3 million loss recorded in the third quarter of 2024. This improvement was mainly due to smaller non-cash fair value adjustments related to outstanding warrants and contingent value rights. Meanwhile, Cantor Fitzgerald raised its price target for Core Scientific to $26.00 from $18.00, maintaining an Overweight rating, as shareholders prepare to vote on a proposed acquisition by CoreWeave. Roth/MKM upgraded Core Scientific’s stock from Neutral to Buy, raising its price target to $23.50 from $17.00, assuming the deal with CoreWeave will not proceed. CoreWeave has urged Core Scientific shareholders to support the merger despite opposition from proxy advisors Institutional Shareholder Services and Glass Lewis. These developments reflect Core Scientific’s strategic shifts and ongoing discussions regarding its potential acquisition.

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