Morgan Stanley analyst Keith Weiss has maintained their neutral stance on CRWV stock, giving a Hold rating today.
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Keith Weiss has given his Hold rating due to a combination of factors that highlight both the potential and the risks associated with CoreWeave, Inc. The company has demonstrated impressive growth by building a substantial backlog exceeding $25 billion, showcasing its strong expertise in constructing and managing large GPU clusters. This positions CoreWeave well to capitalize on the expanding Generative AI market, which is projected to reach significant monetization levels by 2028.
However, despite these strengths, there are notable risks that contribute to the Hold rating. CoreWeave faces a high debt load, expected to increase substantially, and a significant concentration of revenue from just two customers. Additionally, the competitive landscape is intensifying, with potential threats from hyperscalers who are also key customers. The current volatile macroeconomic environment further complicates the situation, potentially limiting investor enthusiasm and valuation expansion in the near term. As a result, while the long-term outlook remains positive, the immediate prospects are more uncertain, justifying the Hold rating.
According to TipRanks, Weiss is a 5-star analyst with an average return of 12.8% and a 61.81% success rate. Weiss covers the Technology sector, focusing on stocks such as Adobe, Intuit, and Microsoft.
In another report released today, Citi also initiated coverage with a Hold rating on the stock with a $43.00 price target.