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Investing.com - Macquarie raised its price target on CoreWeave (NASDAQ:CRWV) to $115.00 from $65.00 on Wednesday, while maintaining a Neutral rating on the stock. The company, currently trading at $130.60 with a market capitalization of $71.4 billion, has shown significant momentum with a 35% return over the last week according to InvestingPro data.
The significant price target increase reflects higher earnings expectations and a forward-looking valuation approach that captures the benefits of new infrastructure coming online and ramping up.
Macquarie’s updated target price incorporates discounting to present value and slightly lower assigned revenue and EBITDA multiple ranges, which were reduced from 11-13x to 10-12x for revenue and from 14-17x to 13-16x for EBITDA.
The research firm indicated that the lower multiple ranges were warranted as CoreWeave has yet to demonstrate consistency in execution amid high upfront capital expenditure requirements.
Macquarie also cited concerns about the "unprecedented scale in new physical infrastructure development required" as a factor in its valuation adjustment, despite the higher overall price target.
In other recent news, CoreWeave reported second-quarter 2025 earnings with revenue reaching $1.21 billion, marking a substantial 207% increase compared to the same period last year. This figure surpassed the company’s own guidance by approximately $115 million and exceeded consensus estimates by 12%. The company also reported adjusted operating margins of 16%, which were 170 basis points higher than expected. Analysts have responded to these results with various ratings; H.C. Wainwright maintained a Neutral rating, while Morgan Stanley reiterated its Equalweight rating with a $91 price target. Wells Fargo raised its price target for CoreWeave from $60 to $105, maintaining an Equal Weight rating. Additionally, Stifel increased its price target to $120 from $115, keeping a Hold rating. CoreWeave’s strong positioning in the GPU build-out market, aided by significant contracts from Microsoft and OpenAI, has contributed to its remarkable growth in the software space.
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