Analyst John Todaro from Needham maintained a Buy rating on Core Scientific Inc (CORZ – Research Report) and decreased the price target to $16.00 from $17.00.
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John Todaro has given his Buy rating due to a combination of factors that highlight Core Scientific Inc’s promising outlook. The company has successfully delivered the first 8MW to CoreWeave ahead of schedule, which enhances confidence in its ability to meet future milestones, including the expected delivery of over 40MW by the end of the second quarter of 2025. This achievement indicates strong execution capabilities and aligns with the company’s projection of having 590MW online by the end of the second quarter of 2027.
Additionally, despite changes in the capital expenditure arrangement with CoreWeave, there is no economic impact on Core Scientific’s obligations, maintaining a cost of $1.5 million per MW. The company is also adapting to market conditions by planning for a 5-10% increase in spending for new sites due to tariffs and showing openness to enterprise customers. The strong interest from hyperscalers further supports the view that Core Scientific is an attractive investment, particularly as it is perceived to be undervalued in the high-performance computing sector.
Todaro covers the Financial sector, focusing on stocks such as Applied Digital Corporation, Riot Platforms, and Cipher Mining. According to TipRanks, Todaro has an average return of 22.6% and a 48.48% success rate on recommended stocks.
In another report released today, H.C. Wainwright also maintained a Buy rating on the stock with a $17.00 price target.