Analyst Jonathan Petersen of Jefferies maintained a Buy rating on Core Scientific Inc (CORZ – Research Report), reducing the price target to $14.00.
Jonathan Petersen has given his Buy rating due to a combination of factors that highlight Core Scientific Inc’s strategic positioning and growth potential. The company is uniquely positioned to capitalize on the burgeoning demand for data centers, particularly those supporting AI infrastructure, thanks to its experienced team with backgrounds from notable firms like Equinix and HP. This expertise is crucial in securing partnerships with hyperscalers, which are typically cautious about expanding their vendor lists.
Additionally, Core Scientific’s partnership with CRWV is expected to drive significant revenue growth, with the deal projected to bring in approximately $851 million annually once capital expenditure credits are utilized. The market appears to undervalue this agreement, as well as the potential for future deals with other hyperscalers, suggesting a misalignment in current stock pricing. Furthermore, the company’s expansion into strategic locations like Auburn, AL, and its potential to increase power capacity, positions it well to meet the rising demand for data center space, further supporting the Buy recommendation.
According to TipRanks, Petersen is a 5-star analyst with an average return of 6.4% and a 58.24% success rate. Petersen covers the Real Estate sector, focusing on stocks such as Public Storage, Extra Space Storage, and American Tower.
In another report released on April 9, Roth MKM also maintained a Buy rating on the stock with a $20.00 price target.