Analyst John Todaro from Needham maintained a Buy rating on Core Scientific Inc (CORZ – Research Report) and keeping the price target at $18.00.
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John Todaro has given his Buy rating due to a combination of factors that highlight the strategic advantages of Core Scientific Inc. The potential acquisition by CoreWeave suggests significant financial benefits, such as eliminating approximately $850 million in annual lease expenses. This acquisition would also allow CoreWeave to own the underlying 590MW of capacity, which is currently contracted with Core Scientific, providing a more stable and controlled infrastructure.
Furthermore, the acquisition would grant CoreWeave an additional 300MW of capacity, which could be leveraged for high-performance computing (HPC) and artificial intelligence (AI) workloads. The strategic location of Core Scientific’s sites near major metropolitan areas enhances their suitability for inference workloads, unlike other miners with remote locations. The contracted HPC capacity of 590MW is expected to generate significant EBITDA, and if the additional capacity proves suitable for HPC, it could further increase annualized EBITDA substantially. These factors collectively underpin Todaro’s Buy rating for Core Scientific Inc.
Todaro covers the Financial sector, focusing on stocks such as Applied Digital Corporation, Riot Platforms, and TeraWulf Inc. According to TipRanks, Todaro has an average return of 37.8% and a 66.67% success rate on recommended stocks.
In another report released on June 16, Bernstein also maintained a Buy rating on the stock with a $17.00 price target.