Stifel Starts CoreWeave (CRWV) at Buy

Stifel analyst Ruben Roy initiates coverage on CoreWeave (NASDAQ: CRWV) with a Buy rating and a price target of $55.00.

The analyst comments: "CoreWeave is a leading GPU-as-a-service provider with compute infrastructure purpose-built for AI. We view the company as a growth story, with some hurdles to overcome (namely debt and D&A overhangs, alongside scaling infrastructure; reflected in pressured multiple), but ongoing execution positions the company to capture increasing market share in an exponentially growing critical market. CoreWeave runs ~32 data centers globally, with >250k GPUs supported by >360MW of active power, and contracted deployment of future infrastructure. Management likely grows to >$40bn net PP&E by FY27 (vs. big-4 CSPs indicating ~ $60-80bn CapEx in FY25), which while smaller than traditional hyperscalers, should hold advantages given expectations to deliver ~20% targeted MFU improvement at-scale. We believe that execution on the strategy should deliver an improved balance sheet and positive FCF over a ~5-year period, which should drive multiple expansion."

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 $35.42 yesterday.

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