Wells Fargo analyst Michael Turrin has maintained their neutral stance on CRWV stock, giving a Hold rating on April 22.
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Michael Turrin has given his Hold rating due to a combination of factors impacting CoreWeave, Inc. Class A. One of the primary reasons is the current market conditions where the stock has already factored in short-term optimism regarding hyperscale supply shortages. This suggests that the potential for immediate gains is limited, keeping the stock range-bound for the time being. Additionally, there are long-term uncertainties related to AI supply and demand, coupled with broader macroeconomic concerns, which contribute to the cautious outlook.
Another factor influencing the Hold rating is the company’s valuation. CoreWeave’s shares are trading at a high multiple compared to its earnings, which, when combined with its substantial capital requirements and significant debt load, presents a risk. Despite these challenges, there are positive indicators, such as potential new customer announcements and capital expenditure plans that could support future growth. However, these positives are balanced by the risks, leading to a neutral stance on the stock.
According to TipRanks, Turrin is an analyst with an average return of -1.4% and a 46.40% success rate. Turrin covers the Technology sector, focusing on stocks such as Adobe, Salesforce, and ServiceNow.
In another report released on April 22, Citi also initiated coverage with a Hold rating on the stock with a $43.00 price target.