CoreWeave (CRWV) stock has dropped sharply since the company reported its second-quarter results. The company posted a 207% rise in Q2 revenue but reported a larger-than-anticipated loss. Despite the drop, H.C. Wainwright’s Top analyst, Kevin Dede, upgraded the stock from Neutral to Buy and set a price target of $180. The new rating highlights the company’s strong fundamentals and long-term potential in the cloud and AI infrastructure space.
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What’s Driving the Upgrade?
Dede pointed to CoreWeave’s updated guidance as a key positive. The company raised its FY25 revenue midpoint to $5.25 billion, up 5% from the March forecast of $5.0 billion. He said the stock’s recent drop does not reflect the company’s value. In fact, CoreWeave remains a leader in the “neocloud space” and could offer strong returns as it continues to grow.
The analyst also highlighted CoreWeave’s strong partnership with Nvidia (NVDA). The company was the first to use the latest two generations of Nvidia AI ‘superchips,’ giving it an edge over competitors in the market. In addition, recent research from SemiAnalysis confirmed the platform’s strength and CoreWeave’s leading role in AI adoption.
On the valuation front, Dede believes the stock is trading at a low price compared with its sales and earnings, suggesting there is enough room for the stock to rise.
Is CoreWeave Stock a Good Investment?
Overall, Wall Street is sidelined on CoreWeave stock, with a Hold consensus rating based on 14 Holds, five Buys, and one Sell recommendation. The average CRWV stock price target of $116.45 indicates 27.24% upside potential from current levels.
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