Shares of blockchain infrastructure provider Core Scientific (CORZ) are up in Friday’s trading after Macquarie Equity Research upgraded the stock from Hold to Buy and raised its price target from $15 to $34. Importantly, the upgrade came after Core Scientific announced that its planned sale to cloud computing firm CoreWeave (CRWV) was canceled, as the company didn’t receive enough shareholder votes to approve the deal at a special meeting held on Thursday.
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Nevertheless, although the acquisition fell through, CoreWeave said in a follow-up letter that it still plans to continue its business partnership with Core Scientific. According to five-star Macquarie analyst Paul Golding, as well as Marni Lysaght, the hosting agreement between the two companies will move forward as originally planned.
Moreover, they believe that this puts Core Scientific in a strong position to grow. In fact, the company already has a large neocloud contract and experience in building high-performance computing systems at scale, which gives it an edge over its competitors. The analysts also stated that Core Scientific can now offer its extra capacity to the highest bidder, which could boost earnings and benefit shareholders more than if the deal with CoreWeave had gone through.
Is CORZ Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on CORZ stock based on 13 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average CORZ price target of $25.37 per share implies 18.9% upside potential.
