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Investing.com - Evercore ISI has reduced its price target on CoreWeave (NASDAQ:CRWV) to $160 from $175 while maintaining an Outperform rating, citing temporary delays in data center powered shell deliveries. CoreWeave shares currently trade at $105.61, having fallen nearly 9% over the past week despite maintaining a substantial 164% gain year-to-date, according to InvestingPro data.
The AI infrastructure company reported third-quarter revenue of $1.365 billion and a loss of $0.08 per share, beating consensus expectations of $1.287 billion and a $0.40 loss. Operating income reached $217 million and EBITDA hit $838 million, both exceeding analyst forecasts. CoreWeave maintains an impressive 74.5% gross profit margin over the last twelve months, though the company remains unprofitable with a diluted EPS of -$3.82 during this period.
Despite the strong quarterly performance, CoreWeave’s implied fourth-quarter revenue guidance of approximately $1.54 billion falls below consensus estimates of $1.8 billion due to delayed third-party data center deliveries. The company emphasized this represents a supply issue rather than a demand problem, with affected capacity expected to be delivered by the first quarter of 2026. InvestingPro analysis shows CoreWeave is currently trading above its Fair Value, with analysts projecting 174% revenue growth for the fiscal year despite expectations the company won’t be profitable this year.
CoreWeave reported a substantial backlog of $55.6 billion, including approximately $50 billion in remaining performance obligations from deals with Meta and OpenAI, plus $5.6 billion from other commitments. The company noted that pricing for prior-generation GPUs remains resilient, with one cluster of over 10,000 H100 GPUs renewing two quarters before contract expiration with only a 5% price reduction. With a market capitalization of $54.75 billion, CoreWeave trades at a high EBITDA multiple of 38.15x, reflecting investor confidence in its future growth potential.
Capital expenditures and demand are expected to increase in 2026 as the company works to meet growing requirements from both hyperscale and enterprise customers, according to the research firm. Investors should note that CoreWeave’s short-term obligations exceed its liquid assets, with a current ratio of 0.52 and total debt of $14.56 billion. For deeper insights into CoreWeave’s financial health, valuation metrics, and over a dozen additional ProTips, explore the comprehensive Pro Research Report available exclusively on InvestingPro.
In other recent news, CoreWeave Inc. reported its third-quarter 2025 earnings, significantly surpassing analysts’ expectations. The company posted an earnings per share (EPS) loss of $0.22, which was much better than the projected loss of $0.57. Additionally, CoreWeave’s revenue exceeded forecasts, coming in at $1.36 billion compared to the expected $1.29 billion. Despite these positive financial results, DA Davidson reiterated an Underperform rating on CoreWeave, maintaining a price target of $36.00. The research firm expressed concerns about CoreWeave’s declining profitability, noting this as a continuing trend. These recent developments highlight a mixed outlook for the company, with strong revenue performance but ongoing profitability challenges.
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