‘Don’t Buy Into the Hype,’ Warns Top Analyst on CoreWeave Stock (CRWV) After Surge

CoreWeave (CRWV) stock is climbing in Tuesday’s pre-market trading, extending its sharp rally as investor enthusiasm remains high. Since going public less than two months ago, shares have surged around 150%, fueled by strong first-quarter results and upbeat guidance. In response to the stock’s sharp rise, Barclays’ Top-rated analyst Raimo Lenschow raised his price target to $100 from $70. Still, he downgraded the stock from Overweight (Buy) to Equal Weight (Hold), advising investors to be cautious about buying the stock because of its high valuation and the lack of a “near-term catalyst.”

Valuation Concerns at the Forefront

Barclays analyst Raimo Lenschow pointed out that CoreWeave is currently valued at 41 times its estimated 2026 EV/EBIT, based on projections that it will carry about $31.4 billion in gross debt. He called this a “healthy premium” compared to other AI infrastructure firms. However, he cautioned that “we are not sure there are fundamental arguments” to support a valuation beyond this point.

No Near-Term Catalyst

While the long-term growth story remains appealing, Lenschow sees little to push the stock higher in the near term. “Given valuation and lacking a near-term catalyst,” he wrote, “we see limited upside in the near term from here.” In other words, even though CoreWeave is well-positioned in the AI trend, there may not be any immediate events to sustain the current rally.

Long-Term Story Still Intact

Despite the downgrade, Lenschow kept a positive long-term view on CoreWeave. He sees it as a solid way to invest in the growing GenAI trend. Still, he warned that the recent wave of investor excitement might be running ahead of the company’s underlying business fundamentals.

Is CRWV a Good Stock to Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on CRWV stock based on seven Buys, five Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average CRWV price target of $47.42 per share implies 53.84% downside risk.

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