Ananda Baruah, a top Loop Capital analyst, initiated a Buy rating on CoreWeave (CRWV) stock with a price target of $165, indicating approximately 36% upside potential from current levels. The 5-star analyst expects the cloud computing company to deliver “material P&L upside to Street.”
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
CoreWeave stock has risen more than 25% over the past month. Recently, CoreWeave stock jumped as the cloud computing company secured a $6.3 billion order from chip giant Nvidia (NVDA).
Here’s Why Loop Capital Analyst Is Bullish on CoreWeave Stock
Baruah expects expansion in CRWV stock’s enterprise value to expected EBITDA (EV/EBITDA) multiple. The analyst sees CoreWeave as the largest of “Neoclouds,” which are being invited into a “Cool Kids Club” by semiconductor giant Nvidia (NVDA), the hyperscalers, and major AI Labs.
Furthermore, Baruah stated that the market is materially underappreciating the extent to which hyperscalers and major AI Labs/frontier model builders remain committed to pushing the “innovation envelope forward.” He also noted other positives, including Nvidia’s Blackwell platform ramping to scale. The top analyst is also optimistic about neocloud companies gaining from opportunities like sovereign AI.
Baruah projects CoreWeave’s 2027 revenue and EBITDA (earnings before interest, taxes, depreciation, and amortization) at $17.9 billion and $12.8 billion, respectively, compared to the Street’s estimates of $17.8 billion and $12.7 billion. Baruah’s price target is based on a valuation multiple of 10x EV/EBITDA (calendar year 2027 estimate), which he expects to gain relevance as we head into 2026.
It is worth noting that recently, Citizens JMP upgraded its rating for CoreWeave stock to Buy from Hold, while Raymond James initiated coverage of the AI infrastructure stock with a Buy rating.
Is CoreWeave Stock a Good Buy?
Currently, Wall Street has a Moderate Buy consensus rating on CoreWeave stock based on 13 Buys, 12 Holds, and two Sell recommendations. The average CRWV stock price target of $142.32 indicates 17.2% upside potential.
