CoreWeave stock price target raised to $99 from $91 at Morgan Stanley

Investing.com - Morgan Stanley has raised its price target on CoreWeave (NASDAQ:CRWV) to $99.00 from $91.00 while maintaining an Equalweight rating on the stock. The new target sits below CoreWeave ’s current trading price of $105.61, suggesting the stock may be overvalued according to InvestingPro metrics.

The investment firm cited CoreWeave’s success in securing and expanding large contracts from demanding generative AI users as strong validation of the company’s positioning in the GPU infrastructure market. This success is reflected in the company’s impressive projected revenue growth of 174% for fiscal year 2025.

Morgan Stanley noted that no single customer now represents more than 35% of CoreWeave’s revenue backlog, highlighting progress in customer diversification following deals with Nvidia and Meta.

Despite these positive developments, the firm emphasized that consistent execution in provisioning and operating GPU infrastructure in a constrained environment will be crucial for proving the durability of CoreWeave’s business model.

Morgan Stanley analysts remain on the sidelines awaiting further evidence of CoreWeave’s expanding software capabilities, but suggested that investors focused on the GPU economy with longer-term horizons might find a pullback in the stock an interesting entry point. The stock has already experienced an 8.76% decline over the past week, though it maintains a 164% gain year-to-date. For deeper insights into CoreWeave’s valuation and financial health, InvestingPro offers a comprehensive research report with additional metrics and analysis.

In other recent news, CoreWeave reported its third-quarter earnings for 2025, showcasing significant growth and exceeding analyst expectations. The company achieved quarterly revenue of $1.365 billion, marking a 134% year-over-year increase and surpassing Wall Street’s forecast of $1.286 billion. Additionally, CoreWeave reported a loss of $0.22 per share, which was a notable improvement over the anticipated loss of $0.57. Despite these positive results, CoreWeave faced some operational challenges, including deployment delays with a third-party vendor, leading to a reduction in its fiscal year 2025 capital expenditure guidance by $8.5 billion.

Analyst firms have responded to these developments with mixed reactions. Mizuho lowered its price target for CoreWeave to $120 while maintaining a Neutral rating, citing timing issues. Jefferies adjusted its price target to $155, retaining a Buy rating despite the deployment delays. Evercore ISI also reduced its price target to $160 but maintained an Outperform rating, pointing to temporary delays in data center deliveries. Meanwhile, DA Davidson reiterated an Underperform rating with a price target of $36, expressing concerns over CoreWeave’s deteriorating profitability. These recent developments reflect the complex landscape facing CoreWeave as it navigates both impressive growth and operational hurdles.

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