CoreWeave stock initiated with Buy rating by Loop Capital

Investing.com - Loop Capital initiated coverage on CoreWeave (NASDAQ:CRWV), currently trading at $121.39 with a market capitalization of $62.93 billion, with a Buy rating and a price target of $165.00 on Friday. According to InvestingPro, the company maintains an impressive gross margin of 74.46%.

The research firm sees "ongoing potential for material P&L upside" compared to consensus estimates and expects eventual EV/EBITDA multiple expansion for the company.

Loop Capital views CoreWeave as "the largest of a handful of Neoclouds" being embraced by NVIDIA, Hyperscalers, and major AI Labs, including frontier model builders.

The firm believes there is "material underappreciation" for how committed Hyperscalers and AI Labs remain to innovation, coinciding with NVIDIA’s Blackwell scaling up and new markets like Sovereign emerging for Neoclouds.

Loop Capital’s calendar year 2027 revenue and EBITDA estimates of $17.9 billion and $12.8 billion slightly exceed Street consensus of $17.8 billion and $12.7 billion, with the $165 price target representing 10x EV/EBITDA on their 2027 estimates.

In other recent news, CoreWeave has made significant strides in both investment and strategic partnerships. The company announced a substantial £1.5 billion expansion in its AI data center capacity in the United Kingdom, elevating its total commitment in the region to £2.5 billion. This investment is aligned with the UK Government’s Compute Roadmap and is expected to create jobs in engineering and operations. Additionally, CoreWeave has secured a major agreement with NVIDIA, valued at $6.3 billion, under their existing Master Services Agreement. This deal allows NVIDIA to access CoreWeave’s cloud computing infrastructure while ensuring the purchase of any unsold capacity through 2032. Analyst firms have taken notice of these developments, with Citizens JMP upgrading CoreWeave’s stock rating to Market Outperform and Cantor Fitzgerald reiterating its Overweight rating. Barclays also maintained its Equalweight rating, highlighting the significance of the NVIDIA agreement. These recent developments reflect CoreWeave’s growing influence and strategic positioning in the cloud computing market.

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