CoreWeave ($CRWV) Gets Downgraded after 300% Rally — but Analyst Sets $185 Target

Shares of CoreWeave (CRWV) have skyrocketed roughly 320% since its IPO in late March this year, outpacing the Nasdaq 100’s 14% gain over the same period. But after this meteoric run, Bank of America is pushing the brakes.

The firm downgraded CoreWeave from “Buy” to “Neutral,” citing valuation concerns. Shares now trade at nearly 9x estimated revenue, a premium compared to peers. Analyst Brad Sills said, “Much of the near-term upside has been priced in.” Despite the rating cut, Sills raised his price target to $185 from $76, the highest on Wall Street.

Sound Fundamentals, but Caution Is Warranted

That new target implies about 26% upside from current levels near $147, signaling continued confidence in CoreWeave’s long-term AI infrastructure story. The company recently expanded a major contract with OpenAI and expects 2025 revenue to be between $4.9 billion and $5.1 billion, following a fivefold year-over-year revenue jump in Q1.

Still, the rally has sparked meme-stock comparisons, and short interest has surged, making it expensive for investors to bet against the name. CoreWeave’s steep valuation, alongside projected negative free cash flow of $21 billion through 2027, has some analysts urging caution.

Analysts Are Split

According to Tipranks’ Forecast page, half the analysts tracked by Tipranks now rate the stock a “Hold,” while the other half recommend a “Buy.” The average analyst price target sits more than 50% below current levels, suggesting broad expectations for a pullback.

This creates a split view on CoreWeave’s 12-month outlook. Bulls see strong long-term demand for AI infrastructure, pointing to CoreWeave’s niche in GPU cloud computing and client list that includes OpenAI and Nvidia (NVDA). Bears, however, argue the recent gains are overextended and the stock is due for a correction.

Bank of America’s rating change, downgrade in rating, but big upgrade in target, reflects that tension. The fundamentals may be strong, but valuation and short-term momentum have gotten ahead of the story.

Is CoreWeave Stock a Good Buy?

As discussed in the piece itself, CoreWeave generates split opinions on Wall Street. However, the CRWV stock boasts a Moderate Buy rating, with an average price target of $47.42. This implies a 70.08% downside.

See more CRWV analyst ratings