CoreWeave Stock (CRWV) Gains Bullish New Analyst Coverage

CoreWeave's stock (NASDAQ: CRWV) has had a very volatile start to life as a public company, with sentiment having taken a bit of a turn in recent weeks as the share lockup expired. A bullish initiation of coverage this morning, with a healthy price target could give CRWV bulls something to get behind.

Cantor Fitzgerald initiated coverage with an “Overweight” rating and a price target of $116, highlighting CoreWeave's position as a software-driven, AI-focused hyperscaler poised to capitalize on the burgeoning AI market, particularly in large language model training and inference-based applications.

The analyst also pointed to the company's unique demand setup and top-line growth potential as key drivers, while acknowledging inherent risks related to customer concentration, financing, and power-related execution. Cantor also noted the stock's attractive valuation of 7-times on enterprise value to expected forward revenue basis vs. infrastructure software coverage group average of 8.0-times.

Strategic Challenges

CoreWeave's strategic moves have not been without their challenges. The company's proposed all-stock acquisition of Core Scientific, a data center power provider, for $9 billion has met resistance from significant Core Scientific shareholders.

These shareholders, including hedge funds such as Two Seas Capital and Helix Partners, are concerned about the fixed share ratio and the subsequent decline in CoreWeave's stock price, which has reduced the deal's effective valuation.

They are reportedly considering opposing the merger unless revised terms are offered, adding a layer of uncertainty to CoreWeave's infrastructure expansion plans.

On the financial front, CoreWeave reported strong second-quarter revenue of $1.21 billion on August 12, surpassing analyst estimates of $1.08 billion. This growth was propelled by increasing demand for AI cloud computing services, particularly those utilizing Nvidia GPUs.

Despite the revenue beat, operating expenses rose significantly to $1.19 billion, up from $317.7 million a year earlier, leading to a 6% after-hours drop in the stock price. 

To manage its debt obligations, CoreWeave announced a $1.5 billion bond sale on July 21, aimed at paying down existing debt. This followed a $2 billion debt offering in May, which was reportedly five times oversubscribed.  Despite concerns about its debt levels and the sustainability of demand, CoreWeave's management has expressed confidence in its spending plans, citing strong client demand signals.

Market Sentiment

Analyst sentiment towards CoreWeave has been generally positive, with Citi upgrading the stock to “Buy” from “Neutral” in early August 2025. Citi analysts cited robust earnings reports from major clients, such as Microsoft, as a key factor in their upgrade, also removing the downside watch, reflecting increased confidence in CoreWeave's growth prospects.