Stryker shares tumble despite strong Q2 results and raised guidance
On Thursday, JMP Securities reiterated its positive stance on Core Scientific Inc. (NASDAQ: CORZ), maintaining a Market Outperform rating and a $15.00 price target. Currently trading at $10.78, the stock has shown remarkable strength with a 160% return over the past year, according to InvestingPro data. The firm’s analyst, Greg Miller, supported the rating with Core Scientific’s significant market capitalization of approximately $3.2 billion and its debt level around $400 million.
Miller’s analysis suggests that Core Scientific’s stock is valued at 16.0 times and 8.0 times its estimated EBITDA for the years 2026 and 2027, respectively. The $15.00 price target set by JMP is derived from applying an approximately 12.0 multiple to the company’s projected EBITDA for the year 2027. InvestingPro analysis indicates the stock is currently trading above its Fair Value, with analyst targets ranging from $15 to $23, suggesting potential upside opportunities.
The analyst also highlighted the potential upside for Core Scientific’s stock, noting that if the company successfully sells out of capacity, it could theoretically see its share price reach approximately $48.00 for the High-Performance Computing (HPC) business segment alone. However, such a valuation would be realized over the long term, not immediately.
Core Scientific’s current financial position includes a market capitalization of about $3.2 billion and a total debt of $1.19 billion as of Q1 2025. While the company maintains a strong current ratio of 4.26, indicating solid liquidity, its financial health score on InvestingPro is rated as "FAIR." The company’s valuation multiples based on future EBITDA projections play a significant role in JMP’s analysis and the maintained price target. Discover 11 additional exclusive ProTips and comprehensive financial analysis in the Pro Research Report.
The asserted potential for a significant increase in share price is contingent upon Core Scientific’s ability to fully sell out its capacity in the HPC business. This scenario is presented as a hypothetical outcome that could materialize over an extended period, reflecting the analyst’s long-term perspective on the stock’s performance.
In other recent news, Core Scientific has been the focus of several analyst updates and strategic developments. JMP analysts initiated coverage on Core Scientific with a Market Outperform rating, citing the company’s significant growth potential following its emergence from bankruptcy earlier this year. They highlighted its substantial power capacity, which could drive shareholder value, and projected a valuation for its high-performance computing business. Meanwhile, Bernstein analysts maintained an Outperform rating with a $17 price target, noting Core Scientific’s partnership with CoreWeave and its progress on projects dedicated to OpenAI. Cantor Fitzgerald also raised its price target to $18, maintaining an Overweight rating due to the company’s recent performance and secure contracts.
In leadership news, Core Scientific appointed Elizabeth Crain to its Board of Directors, where she will serve as Chair of the Audit Committee. Crain brings extensive experience in investment banking and private equity, which CEO Adam Sullivan believes will be beneficial for the company’s future endeavors. Additionally, Todd Becker resigned from the board, having provided leadership during significant financial events, including the company’s emergence from bankruptcy. The company is actively searching for a new independent director to fill his position. These developments reflect Core Scientific’s ongoing efforts to strengthen its strategic position and operational capabilities.
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