MoffettNathanson lifts CoreWeave stock target to $56, stays Neutral

Tuesday, MoffettNathanson updated its outlook on CoreWeave (NASDAQ:CRWV), raising the price target to $56 from the previous $43, while keeping a Neutral stance on the stock. The adjustment follows a remarkable 157% surge over the past six months, with the stock now trading near $103. According to InvestingPro data, the company’s market capitalization has reached $49.3 billion.

The firm’s analysts acknowledged the recent performance of CoreWeave’s stock but expressed caution. Their concerns align with InvestingPro analysis, which indicates the stock is trading above its Fair Value with elevated multiples, including an EV/EBITDA ratio of 40.5x. The analysts emphasized the precarious nature of trying to trade based on the recent surge in CoreWeave’s share price, particularly as technical indicators suggest overbought conditions.

CoreWeave’s management team was noted as possibly leveraging the increased stock value to their advantage. Analysts speculated that the company might issue convertible securities or acquire tangible assets using the equity, capitalizing on the higher market valuation.

Despite the raised price target, MoffettNathanson advised investors to exercise caution. They reiterated their Neutral rating, suggesting that the stock’s current position does not warrant active buying or selling from investors. The analysts concluded by emphasizing the dangers associated with making trades in such a volatile context.

In other recent news, CoreWeave reported strong performance in the first quarter, exceeding revenue expectations by 15 percentage points. This led Citi analyst Tyler Radke to raise the company’s stock target from $43 to $94, despite maintaining a Neutral rating due to mixed results in other areas like margins and net income. CoreWeave also announced a $2 billion senior notes offering, increasing from an initial target of $1.5 billion. The proceeds are intended for general corporate purposes, including debt repayment. Meanwhile, Barclays (LON:BARC) downgraded CoreWeave’s stock rating from Overweight to Equal Weight, although they raised the price target to $100, citing concerns about the company’s valuation despite its strong growth prospects. Citizens JMP initiated coverage on CoreWeave with a Market Perform rating, acknowledging its significant growth while expressing caution about long-term profit margins. Additionally, CoreWeave appointed Carl Holshouser as Vice President of Government Affairs, highlighting its strategic expansion in leadership.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.