Ed Engel, an analyst from Compass Point, reiterated the Buy rating on Core Scientific Inc. The associated price target is $23.00.
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Ed Engel has given his Buy rating due to a combination of factors that highlight the potential benefits of the merger between Core Scientific Inc (CORZ) and CRWV. The merger is expected to bring substantial cost savings, including over $1.3 billion annually from lease and cost synergies. This transaction is anticipated to streamline CRWV’s capital structure, potentially leading to significant interest savings and enhancing the company’s ability to expand under favorable terms.
Additionally, the current trading price of CORZ offers investors an opportunity to acquire CRWV shares at a discount, despite the lack of borrowing options for hedging. The implied volatility of CRWV options and concerns over IPO lockups are factors that investors are considering. However, the potential for cost savings and the strategic benefits of the merger underpin Engel’s confidence in reiterating a Buy rating with a price target of $23.
According to TipRanks, Engel is ranked #8532 out of 9670 analysts.
In another report released on June 27, Needham also maintained a Buy rating on the stock with a $18.00 price target.