Analyst Kash Rangan from Goldman Sachs reiterated a Hold rating on CoreWeave, Inc. Class A and increased the price target to $120.00 from $61.00.
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Kash Rangan’s rating is based on a combination of factors that reflect both optimism and caution regarding CoreWeave, Inc. Class A’s future prospects. The company has shown impressive revenue growth, with expectations of a 173% increase, and has successfully expanded its customer base and capacity, which suggests a promising long-term asset potential. However, Rangan remains cautious due to several persistent risks.
CoreWeave’s significant customer concentration risk, particularly after a substantial deal with OpenAI, poses a potential vulnerability. Additionally, depreciation continues to impact the company’s margins, and its debt levels are expected to remain high in the foreseeable future. While these are not seen as immediate threats, Rangan prefers to see more evidence of sustainable top-line growth and returns on capital expenditures before adopting a more positive stance on the stock.
Rangan covers the Technology sector, focusing on stocks such as Snowflake, ServiceNow, and Microsoft. According to TipRanks, Rangan has an average return of 8.9% and a 56.96% success rate on recommended stocks.
In another report released on July 29, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $110.00 price target.