Craig-Hallum sets price target, buy rating on Core Scientific stock

On Tuesday, Craig-Hallum initiated coverage on shares of Core Scientific Inc. (NASDAQ: CORZ), a company specializing in artificial intelligence and high-performance computing (AI/HPC), with a Buy rating and a price target of $24.00. This new target represents a significant potential increase from the company's current stock price of around $15.

The strong Buy rating aligns with the broader analyst consensus, as shown by InvestingPro data, with the stock already delivering an impressive 336% return over the past year.

The analyst from Craig-Hallum praised Core Scientific's recent CoreWeave deal, highlighting it as a benchmark for smaller entities entering the AI/HPC market with efficient access to power. The analyst emphasized the importance of "speed to power" in the industry, and commended Core Scientific for demonstrating the fastest capability in this area.

Core Scientific has reportedly secured $8.7 billion in high-margin revenue through contracts, which the analyst believes offers considerable growth potential for the company's stock. The analyst noted that Core Scientific's established status as a proven operator is likely to attract further interest and deals from large technology and AI cloud companies, creating a positive cycle of business opportunities.

InvestingPro data reveals the company maintains a healthy financial position with a current ratio of 3.63x and operates with a moderate debt level, supporting its growth trajectory.

The analyst's optimism about Core Scientific's prospects is also rooted in the company's access to power, its exceptional management team, and its proven technical capabilities. These factors collectively position Core Scientific as a leader in the AI Infrastructure investment space, according to the analyst's commentary.

Investors will be watching Core Scientific's progress as it continues to navigate its power pipeline and potentially secures more deals in the expanding AI and cloud computing markets. The company's stock performance in the coming years will likely reflect its ability to capitalize on these opportunities and to maintain its position as a key player in the AI/HPC industry.

With revenue growing at 15.77% and trading at an EV/EBITDA of 29.57x, investors seeking deeper insights can access the comprehensive Pro Research Report and 12+ additional ProTips available on InvestingPro.

In other recent news, Core Scientific Inc. has announced its plans to offer $500 million in convertible senior notes, a financial strategy aimed at attracting qualified institutional investors.

In parallel, Compass Point, a financial services firm, has raised the stock price target for Core Scientific from $20.00 to $26.00, maintaining a 'Buy' rating on the stock. This decision is based on the company's potential to secure high-performance computing contracts and diversify its customer base.

Core Scientific has also initiated construction on a new 100-megawatt data center in Muskogee, Oklahoma. This facility is part of a larger agreement with CoreWeave, involving a total of 500 megawatts of IT load contracted for high-performance computing hosting operations.

Further, Jefferies, a global investment banking firm, has given Core Scientific a 'Buy' rating, acknowledging the company's successful transition from Bitcoin mining to building artificial intelligence-focused data centers. This shift is attributed to the company's strategic use of power resources and its skilled data center development team.

These recent developments indicate Core Scientific's ongoing efforts to secure additional funding, diversify its customer base, and expand its high-performance computing capabilities.

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