CoreWeave stock price target raised to $120 from $115 at Stifel

Investing.com - Stifel raised its price target on CoreWeave (NASDAQ:CRWV) to $120.00 from $115.00 on Wednesday, while maintaining a Hold rating on the stock. The company, currently valued at $71.4 billion, has seen its shares surge 35% in the past week alone. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.

The cloud computing company reported second-quarter revenue of $1.21 billion, exceeding consensus estimates of $1.08 billion. Adjusted operating income reached $199.8 million, surpassing expectations of $159.4 million, driven by strong compute demand in a power-constrained environment. Despite impressive revenue growth, InvestingPro data shows the company remains unprofitable with a basic EPS of -$5.08 over the last twelve months.

CoreWeave’s backlog increased to approximately $30.1 billion, including the previously announced $4 billion OpenAI expansion and a hyperscaler contract expansion in the second quarter. The company expects another hyperscaler contract to contribute in the third quarter.

Management provided mixed guidance, with revenue outlook for the third quarter and fiscal year 2025 exceeding consensus estimates, while margin forecasts fell short. The company reaffirmed its fiscal year capital expenditure midpoint at $21.5 billion to support its target of 900 megawatts capacity by year-end, up from 470 megawatts currently.

Stifel cited potential CORZ-related dilution uncertainty and the pending lock-up expiration on Thursday as factors limiting near-term upside for CoreWeave shares, despite maintaining a constructive long-term view on the company.

In other recent news, CoreWeave reported its financial results for the second quarter of 2025, showcasing a significant revenue increase to $1.2 billion, marking a 207% year-over-year growth. Despite this impressive revenue surge, the company experienced a notable earnings miss, with earnings per share (EPS) at -$0.6, falling short of the anticipated -$0.2. JMP Securities reiterated its Market Perform rating on CoreWeave, highlighting the company’s stronger-than-consensus results and a positive revised outlook. The firm noted CoreWeave’s strategy to shift balance sheet liabilities to other firms in exchange for high initial margins over 3-4 year terms.

DA Davidson maintained its Underperform rating with a $36.00 price target, citing concerns over deteriorating profitability and increased borrowing costs. Mizuho (NYSE:MFG) reiterated its Neutral rating and a $150.00 price target, maintaining a balanced view despite a 233% surge in CoreWeave’s shares since its IPO. These recent developments reflect varied perspectives from analysts on CoreWeave’s financial health and strategic direction.

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