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Investing.com - Melius Research upgraded CoreWeave (NASDAQ:CRWV) from Hold to Buy and established a price target of $165.00, according to a research note released Tuesday. The stock, currently trading at $133.23, has shown remarkable momentum with a 12.19% gain in the past week. InvestingPro data reveals the company’s market capitalization stands at $69.07 billion.
The upgrade reflects Melius’ positive outlook on CoreWeave as "one of the beneficiaries of accelerating cloud demand both right now and well into the future," alongside Microsoft, which the firm also rates as Buy.
The $165 price target represents a multiple of 23 times CoreWeave’s projected 2027 EBIT (earnings before interest and taxes), suggesting significant growth potential for the cloud computing company.
In the same research note, Melius reiterated its Buy rating for Nvidia, stating the company "has blunted concerns around custom ASICs in one fell swoop" with a recent deal.
The analyst also noted potential broader industry implications, suggesting that if "OpenAI is backed by Nvidia - then it has a better chance of funding all its capex plans with everyone else too - from Broadcom to Arista to AMD to Dell," with the latter being a supplier to CoreWeave.
In other recent news, CoreWeave has made significant financial moves and received notable analyst attention. The company announced a £1.5 billion expansion in its AI data center capacity in the United Kingdom, raising its total investment commitment in the UK to £2.5 billion. This investment is aimed at bolstering Britain’s AI infrastructure and is expected to create local jobs in engineering and operations. Analysts have also been active in their evaluations of CoreWeave, with Wells Fargo upgrading the company’s stock rating from Equal Weight to Overweight, citing the benefits from the ongoing AI build cycle. Loop Capital initiated coverage with a Buy rating, highlighting potential for profit and loss upside and multiple expansion. Cantor Fitzgerald reiterated its Overweight rating and noted a new $6.3 billion order agreement under CoreWeave’s Master Services Agreement with Nvidia. Meanwhile, Citizens JMP upgraded CoreWeave to Market Outperform, pointing to accelerating trends in the GPU-as-a-Service market. These developments reflect CoreWeave’s strategic positioning in the rapidly evolving AI and cloud computing sectors.
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