Core Scientific Inc: Undervalued Growth Potential in High-Performance Computing Sector

John Todaro, an analyst from Needham, maintained the Buy rating on Core Scientific Inc (CORZ – Research Report). The associated price target remains the same with $16.00.

John Todaro has given his Buy rating due to a combination of factors that highlight Core Scientific Inc’s potential for growth. The company is perceived as undervalued, especially in light of the positive performance and guidance updates from CoreWeave, which is also rated as a Buy. Despite some concerns about customer concentration and potential short-term share price volatility, the demand environment remains robust, particularly with the involvement of major players like OpenAI.
Moreover, Core Scientific’s strategic positioning in the high-performance computing sector is promising. The company’s ability to meet significant customer obligations, as evidenced by CoreWeave’s substantial IT capacity commitments, underscores its potential for future lease agreements and expansion. This optimistic outlook in the HPC sector contributes to the confidence in Core Scientific’s stock, justifying the Buy rating.

In another report released on May 12, Compass Point also reiterated a Buy rating on the stock with a $23.00 price target.