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Investing.com - MoffettNathanson has raised its price target on CoreWeave (NASDAQ:CRWV) to $65.00 from $56.00 while maintaining a Neutral rating on the stock. The company, currently valued at $48.8 billion, has seen its shares trade with significant volatility, according to InvestingPro data.
The research firm cited multiple factors for the price target increase, including forecast changes and a higher enterprise value to operating income multiple for 2029 estimates, which was increased from 11.0x to 12.0x.
MoffettNathanson also added $3 to its valuation to reflect value accretion from the Core Scientific transaction, according to the updated analysis.
Despite the higher price target, the firm continues to maintain a cautious stance on CoreWeave shares, primarily due to concerns about heightened competitive intensity potentially weighing on project returns.
The research firm has appended an updated CoreWeave model to its analysis, incorporating these new forecasts and valuation metrics.
In other recent news, CoreWeave reported second-quarter sales of $1,213 million, marking a 23.5% increase from the previous quarter’s $982 million. This growth was attributed to rising demand for artificial intelligence across various sectors. Despite these strong results, BofA Securities adjusted its price target for CoreWeave to $168, down from $185, citing some near-term challenges, although they described the quarterly results as "solid." Macquarie, on the other hand, raised its price target to $115 from $65, reflecting higher earnings expectations due to new infrastructure developments. Meanwhile, HSBC reiterated its Reduce rating on CoreWeave, pointing to concerns about the company’s future margin performance, with their EPS estimates significantly below consensus expectations. H.C. Wainwright maintained a Neutral rating, noting the surge in AI demand. Additionally, major banks like JPMorgan, Goldman Sachs, and Morgan Stanley (NYSE:MS) were involved in block trades of CoreWeave shares, selling them in the mid-$90s range. These developments highlight varied analyst perspectives and significant trading activities surrounding CoreWeave.
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