Spain’s credit rating upgraded to ’A+’ by S&P on strong growth
Investing.com - Freedom Capital Markets upgraded CoreWeave (NASDAQ:CRWV) from Sell to Hold and raised its price target to $430.00 from $410.00 on Wednesday. The stock, currently trading at $117.11, has shown remarkable momentum with a 150% return over the last six months, according to InvestingPro data.
The upgrade follows what Freedom Capital Markets described as "solid Q2 FY2026 results" from CoreWeave , which exceeded both analyst forecasts and management guidance. The firm noted the company achieved an acceleration in subscription revenue growth and reached its annual recurring revenue expansion targets ahead of schedule. With a robust gross profit margin of 74.5% and projected revenue growth of 174% for FY2025, the company shows strong operational execution despite being currently unprofitable.
Despite the positive performance, Freedom Capital Markets highlighted several ongoing risks facing CoreWeave, including intensifying competition, potential slowing in endpoint detection and response, margin pressures from AI investments and solution integration, and continued uncertainty around execution in the federal sector. InvestingPro analysis reveals additional challenges, including rapid cash burn and short-term obligations exceeding liquid assets, with a concerning current ratio of 0.52.
CoreWeave’s management reaffirmed its full-year revenue guidance while raising its outlook for operating and net income above consensus estimates, according to the research note.
Freedom Capital Markets indicated its decision to upgrade was based on "largely unchanged revenue forecasts but higher profitability expectations" for the company.
In other recent news, CoreWeave has launched CoreWeave Ventures, a new initiative designed to support startups in the AI ecosystem. This program aims to provide investment resources, technical expertise, and computing power to help founders accelerate their market entry. Additionally, CoreWeave announced a definitive agreement to acquire OpenPipe Inc., a platform specializing in reinforcement learning technology, which is expected to enhance CoreWeave’s AI capabilities.
In terms of stock activities, multiple executives at CoreWeave have sold significant amounts of Class A common stock. Notably, Director Jack D. Cogen sold over a million shares, totaling approximately $104.3 million. Following the expiration of the post-IPO lockup period, the company’s largest shareholder, Magnetar Financial, also sold a substantial number of shares and implemented a protective trading strategy.
Meanwhile, Cantor Fitzgerald initiated coverage of CoreWeave with an Overweight rating, setting a price target of $116. The firm highlighted the balance between the AI market opportunity and execution risks as reasons for their positive outlook.
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