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Tuesday, Mizuho (NYSE:MFG) initiated coverage on CoreWeave (NASDAQ:CRWV) shares with an Outperform rating and a price target of $46.00. Currently trading at $35.42, near its 52-week low of $33.52, the stock has seen significant volatility recently, with a 13% decline in the past week. The firm highlighted CoreWeave’s position as a trusted infrastructure partner in the rapidly growing AI era. InvestingPro data reveals the company’s impressive revenue growth of over 736% in the last twelve months. Mizuho’s analysis suggests that CoreWeave’s strategic focus on AI and its approach to building scalable infrastructure for compute-intensive workloads have poised it to seize a substantial portion of the AI cloud provider market.
According to Mizuho, the market that CoreWeave is targeting is expanding at a swift pace. The firm’s analysts believe that CoreWeave’s early pivot to concentrate exclusively on AI gives it a competitive edge. They also note CoreWeave’s high degree of near-term visibility in its operations and financials. The company maintains a robust gross profit margin of 74.24%, though InvestingPro analysis shows it’s currently not profitable, with a net loss of $937.76 million in the last twelve months.
In terms of valuation, Mizuho finds CoreWeave’s stock to be trading at a modest premium compared to its peers, with roughly 18 times its projected CY26 enterprise value to EBIT (EV/EBIT). This assessment is based on the company’s rapid growth trajectory and its potential for significant multiple expansion over the long term, provided that CoreWeave maintains consistent execution and continues to diversify its customer base. According to InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels, with 12 additional exclusive ProTips available for subscribers.
Mizuho’s price target of $46.00 for CoreWeave stock reflects confidence in the company’s ability to perform well in the future. The firm’s analysts underscore that CoreWeave’s cloud platform is well-positioned to capture a meaningful share of the growing AI cloud provider market, which is a testament to the company’s strategic initiatives and infrastructure capabilities.
The Outperform rating by Mizuho indicates an expectation that CoreWeave’s stock will perform better than the overall market or its sector in the foreseeable future, based on current assessments of the company’s growth and valuation metrics.
In other recent news, CoreWeave has been the focus of several analyst reports, reflecting a range of perspectives on the company’s growth and market position. JPMorgan initiated coverage with an Overweight rating and a $43 price target, highlighting CoreWeave’s rapid revenue growth and strategic partnerships, especially with NVIDIA (NASDAQ:NVDA). Similarly, Barclays (LON:BARC) assigned an Overweight rating with a $48 price target, noting the company’s potential in the expanding genAI optimized IaaS market. On the other hand, Citi and Goldman Sachs both assigned Neutral ratings, with price targets of $43 and $54, respectively. Citi cited CoreWeave’s significant revenue increase forecasted at $4.6 billion for FY25, while Goldman Sachs pointed out the company’s substantial remaining performance obligations and the need for consistent performance due to economic uncertainties. Morgan Stanley (NYSE:MS) took an Equalweight stance with a $46 target, emphasizing CoreWeave’s rapid growth and potential in the Generative AI market, but also noting risks like high debt and customer concentration. Each of these firms provides a distinct outlook, reflecting both the opportunities and challenges CoreWeave faces in its strategic positioning and financial trajectory.
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