In a report released today, Mike Cikos from Needham maintained a Buy rating on CoreWeave, Inc. Class A (CRWV – Research Report), with a price target of $55.00.
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Mike Cikos has given his Buy rating due to a combination of factors that highlight CoreWeave, Inc.’s promising market position and strong financial performance. The company’s first earnings report as a public entity exceeded expectations, with revenue surpassing consensus estimates by 15%. Additionally, management’s guidance for the second quarter of the fiscal year 2025 is set 9% higher than the Street’s midpoint, indicating confidence in continued growth.
CoreWeave’s management has observed a significant increase in enterprise AI adoption, which has encouraged them to accelerate investments. The company’s data center capacity has expanded from 1.3GW to 1.6GW, reflecting its commitment to scaling operations. While there may be some volatility in the stock due to buyside adjustments related to debt for capital expenditures, CoreWeave’s focus on reducing its cost of capital and driving scale supports the positive outlook and Buy rating.
According to TipRanks, Cikos is a 5-star analyst with an average return of 11.5% and a 56.23% success rate. Cikos covers the Technology sector, focusing on stocks such as Cellebrite DI, N-able, and Cloudflare.
In another report released today, Barclays also maintained a Buy rating on the stock with a $70.00 price target.