Truist Securities has upgraded CoreWeave from hold to buy, lowering its price target from $131 to $126, which still suggests a 58% upside from the stock's recent closing price.
Analyst Arvind Ramnani highlighted several factors contributing to this positive outlook, including the ongoing enterprise adoption of open models and sovereign AI, CoreWeave's competitive pricing relative to neoclouds, and the potential for margin expansion if GPU depreciation cycles are conservative.
Despite a 35% decline in shares over the past three months, largely due to increased interest expenses and competitive pressures from Meta, Ramnani believes that Meta's entry into the market may not significantly impact CoreWeave's existing contracts. The consensus among analysts remains bullish, with 24 out of 38 recommending a buy or strong buy rating for CoreWeave