CoreWeave initiated with a Neutral at DA Davidson

DA Davidson initiated coverage of CoreWeave (CRWV) with a Neutral rating and $47 price target. The company is the largest in the new neocloud category, but the firm views it as a “highly levered” way for Microsoft (MSFT) to offload less desirable workloads and NVIDIA (NVDA) to leverage a small investment into a very large customer, the analyst tells investors in a research note. DA Davidson adds however that as long as demand for AI grows faster than hyperscalers are able to build data centers, CoreWeave may be able to use the proceeds of the IPO, borrow more debt and continue the cycle.