JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com - Morgan Stanley (NYSE:MS) maintained its Equalweight rating and $91.00 price target on CoreWeave (NASDAQ:CRWV) on Wednesday, despite the stock trading at $148.75, significantly above the target. According to InvestingPro data, the stock has surged 272% over the past six months.
The firm acknowledged CoreWeave’s strong positioning in the GPU build-out market, noting that large contracts from Microsoft (NASDAQ:MSFT) and OpenAI have enabled unprecedented top-line scaling in the software space.
Morgan Stanley highlighted the dual nature of these large contract wins, describing them as a "double-edged sword" that provides validation from demanding AI customers while creating significant customer concentration risk.
The investment bank indicated it remains on the sidelines awaiting evidence of a broader customer base, which it believes is key to increasing investor confidence in the durability of CoreWeave’s growth.
For investors with strong conviction in the GPU economy and longer-term investment horizons, Morgan Stanley suggested CoreWeave should be considered as a core holding despite its current Equalweight stance.
In other recent news, CoreWeave reported its second-quarter 2025 financial results, showcasing a significant revenue increase to $1.21 billion, surpassing the consensus estimate of $1.08 billion. Despite this revenue surge, the company experienced an earnings per share of -$0.6, which was below the expected -$0.2. Adjusted operating income also exceeded expectations, reaching $199.8 million, driven by strong compute demand. JMP Securities reiterated its Market Perform rating, highlighting CoreWeave’s strategy to shift balance sheet liabilities for high initial margins. Meanwhile, Stifel raised its price target for CoreWeave to $120, maintaining a Hold rating. DA Davidson reiterated an Underperform rating, citing concerns about deteriorating profitability and increased borrowing costs. Mizuho (NYSE:MFG) maintained a Neutral rating, noting the company’s significant post-IPO share price increase. These developments reflect diverse analyst perspectives on CoreWeave’s financial performance and strategic direction.
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