UBS Starts Core Scientific Inc. (CORZ) at Buy

UBS analyst John Hodulik initiates coverage on Core Scientific Inc. (NASDAQ: CORZ) with a Buy rating and a price target of $24.00.

The analyst comments: “We are initiating coverage of CORZ with a Buy rating. We expect delivery of AMD (and AMD-backed) capacity to diversify and improve the risk profile of the tenant base, supporting investor confidence and valuation support. Combined with ~1.9GW of AMD expansion options, the company has a clear path to scaling the platform to ~3GW, solidifying it as one of the most scaled participants in broader colocation industry (i.e., comparable to Digital Realty with 3GW leased and ~$90B of enterprise value). We expect clarity on project financing and end offtakers of AMD leased capacity in the coming months to provide greater visibility on the durability of future cash flows. Core Scientific retains some exposure to ERCOT and Texas regulatory developments, but we believe the risk is modest given the advanced nature of the Hunt site (430MW) and behind-the-meter expansion opportunities that should accelerate time to power at Pecos.”

For an analyst ratings summary and ratings history on Core Scientific Inc. click here. For more ratings news on Core Scientific Inc. click here.

Shares of Core Scientific Inc. closed at $18.79 yesterday.

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