Jefferies reiterated Buy ratings on both CoreWeave (CRWV) and Core Scientific (CORZ) after the latter agreed to acquire the former in an all-stock deal. Following the announcement, CoreWeave shares fell, as some investors were disappointed by the all-stock deal and the absence of a collar or a cash component to protect against CoreWeave’s volatile share price, the analyst tells investors in a research note. The firm noted that the selloff reflects the risk that the volatile price may be below the $130-$185 range by Q4, a view that Jefferies does not share. The firm affirmed a $16 price target on Core Scientific and $180 price target on CoreWeave.
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