CoreWeave (NASDAQ:CRWV) has been a publicly traded entity for a little over three months, but investors have sure enjoyed the ride so far. The stock is up by a hefty 288% since its debut, with the AI infrastructure player benefitting from its strong positioning in the space.
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That momentum received another boost yesterday when the company announced the acquisition of infrastructure partner Core Scientific through an all-stock deal valued at $9 billion, representing roughly 10.5 times CORZ’s projected 2026 revenue. Under the agreement, each CORZ share will be converted into 0.1235 newly issued CRWV shares. Once the deal closes, anticipated in Q4, over $10 billion in lease obligations between the two companies will be eliminated, further streamlining CoreWeave’s operations.
This strategic acquisition is about more than just scale; by bringing more of the infrastructure supply chain in-house, CRWV stands to realize meaningful cost synergies and greater financing flexibility. That’s a key reason Mizuho analyst Gregg Moskowitz sees “good value” in the deal, describing it as “leverage-neutral” due to its all-stock structure. This approach frees up the company to pursue additional debt-funded capital spending elsewhere and even opens the door to potentially lower-cost financing through infrastructure-oriented vehicles, which could drive down its overall cost of capital.
Importantly, CRWV’s already deep ties with CORZ – rooted in more than $10 billion in existing lease commitments – provide a strong foundation for integration. The acquisition will accelerate CRWV’s operational scale, adding over 2 gigawatts of potential power capacity across nine sites and more than 300 employees (including over 115 with technical expertise in data center and power infrastructure). The deal is expected to generate annual cost savings of $500 million by the end of fiscal year 2027.
Despite recognizing the positives of the acquisition, Moskowitz is drawing a line in the sand after CRWV’s meteoric run. The relentless surge in CoreWeave’s share price has, in his view, pushed the stock too far, too fast. While he remains constructive on the deal itself, the analyst argues that the risk/reward is now evenly balanced.
As a result, he’s throwing up a yellow flag, downgrading CRWV stock to Neutral (from Buy) purely on valuation, even as he lifts his price target from $70 to $150. That new target still implies a modest downside from current levels. In other words: enough is enough, at least for now.
10 other analysts join Moskowitz on the fence, and with an additional 6 Buys and 1 Sell, the consensus currently rates the stock as a Moderate Buy. That said, the average price target remains at $78.53, an eye-catching 50% below the current share price. It will be interesting to see whether other analysts move to downgrade their ratings or raise price targets in the months ahead. Stay tuned. (See CRWV stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.