Jonathan Petersen, an analyst from Jefferies, maintained the Buy rating on Core Scientific Inc. The associated price target is $22.00.
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Jonathan Petersen has given his Buy rating due to a combination of factors surrounding the potential merger between Core Scientific Inc (CORZ) and CRWV. Despite CORZ missing revenue expectations but exceeding adjusted EBITDA estimates for the second quarter of 2025, the primary focus is on the pending acquisition by CRWV. The current stock price of CRWV suggests a lower valuation for CORZ than Petersen’s fair takeout price range of $16-23 per share. This discrepancy indicates potential upside if the merger terms are renegotiated or if CRWV’s stock price increases.
Given the volatility of CRWV’s stock price, which has fluctuated significantly in recent months, Petersen believes there is a possibility for a more favorable exchange rate in the merger agreement. This could lead to a higher valuation for CORZ, aligning with the anticipated fair value. The expectation of a renegotiated exchange rate, combined with the intrinsic value of CORZ’s assets, supports Petersen’s Buy rating as investors may anticipate a rejected offer at the current terms, leading to a potential increase in CORZ’s stock price.
Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CORZ in relation to earlier this year.