Compass Point Reiterates Buy Rating on CoreWeave (CRWV)

Compass Point analyst Michael Donovan reiterated a Buy rating and $150.00 price target on CoreWeave (NASDAQ: CRWV).

The analyst commented: "Filed after Friday’s market close, CoreWeave disclosed its amended DDTL 3.0 Credit Agreement (a $2.6B delayed-draw term loan that’s essentially project financing for buying GPU servers and related infrastructure to fulfill OpenAI’s compute contract) so the loan’s covenant timetable better matches the timing of deliveries the company previously discussed on its 3Q25 earnings call on November 10, shortly before our November 13 launch. This amendment increases our confidence in the flexibility of its debt requirements and reinforces our conviction in the stock as our Top Pick for 1Q26. The most relevant change is near-term liquidity relief: for the March–April 2026 monthly payment dates, the minimum liquidity requirement was lowered to $100M (to $100M from $175M for March 2026 and from $125M for April 2026) under the original deal. It also delays when lenders start checking two key “are cash flows ramping as planned?” metrics: the debt service coverage ratio (cash flow vs. debt payments) test is pushed to October 31, 2027 from April 30, 2027, and the contract realization ratio (actual billings and cash receipts vs. the contract’s projected cash flows) test is pushed to February 28, 2026 from the last day of the first full calendar month after the facility’s initial borrowing. Finally, CoreWeave negotiated more flexibility: it can use equity cures for failures of those two ratio tests until October 28, 2026 (to unlimited from a cap of no more than 3 consecutive months in any 4-month period), after which the 3-of-4 style limit applies again. In our view, the next catalyst is management confirming the delayed site is fully ready for service, which we expect to come in early 1Q26. We maintain our Buy rating and $150 price target."

For an analyst ratings summary and ratings history on CoreWeave click here. For more ratings news on CoreWeave click here.

Shares of CoreWeave closed at $79.32 yesterday.

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