Artificial intelligence (AI) infrastructure firm CoreWeave (CRWV) scored a rating upgrade from Citizens JMP, while a top Raymond James analyst, Josh Beck, initiated coverage of CRWV stock with a Buy rating. Notably, Citizens JMP analyst Greg Miller upgraded CRWV stock to Buy from Hold, with a price target of $180. Let’s look at the reasons behind the bullish stance of the two analysts.
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On Monday, CoreWeave stock jumped 7.6% as the cloud computing company secured a $6.3 billion order from chip giant Nvidia (NVDA).
Citizens JMP Upgrades CRWV Stock
Citizens JMP’s rating upgrade for CoreWeave stock follows the pullback since the second-quarter results. The “wave of incremental outsourcing by hyperscalers will overwhelm potential negatives in the near term,” contends Miller.
Miller believes that Oracle’s (ORCL) robust remaining performance obligations (RPOs) and the $17 billion contract won by Nebius (NBIS) from Microsoft (MSFT) clearly reflect that hyperscale outsourcing is accelerating.
Miller expects the graphics processing unit-as-a-service (GPUaaS) business to grow to an estimated $300 billion from $3 billion to $4 billion. CoreWeave operates data centers, offering access to Nvidia’s GPUs, which are required for training and running large AI models. The analyst’s price target of $180 for CRWV stock reflects valuation multiples of 6.0x and 22.0x on estimated 2027 revenue and operating profit, respectively.
Top Analyst Initiates CoreWeave Stock Coverage with a Buy Rating
Beck initiated coverage of CoreWeave stock with a Buy rating and a price target of $130. The 5-star analyst expects CoreWeave to gain from the AI supercycle. He contends that the complexity of building AI cloud stacks is underappreciated.
Furthermore, Beck has a “constructive” view of the ability of CoreWeave’s founder-led management team to navigate AI software stack expansion as well as power, financing, and customer diversification initiatives required to achieve an annual recurring revenue (ARR) of $20 billion exiting 2027.
The analyst noted that his price target is based on an EV/EBIT (2027 estimate) valuation multiple of 13x, which reflects a discount to AI enabler, hyperscaler, and AI native peers that trade closer to 20x EV/EBIT. Beck explained that this discount is due to CoreWeave’s customer concentration and high debt-to-total capital ratio, given the company’s capital-intensive business model.
What Is the Price Target for CRWV Stock?
Overall, Wall Street has a Moderate Buy consensus rating on CoreWeave stock based on 10 Buys, 14 Holds, and two Sell recommendations. The average CRWV stock price target of $137.38 indicates 14% upside potential. CRWV stock is up 201% compared to its initial public offering (IPO) price of $40.
