Two analysts have lowered their price targets for CoreWeave. But one of them expects the stock to rise 105%.

Analysts at Mizuho and Baird lowered their price targets for CoreWeave, a cloud-native company, following its earnings report, despite the market’s positive reaction to the results and its overall optimism. Both analysts still expect the stock price to rise by 40% and 105%, respectively. However, they differ in their assessment of whether the company will be able to continue raising funds for data center construction.

Baird lowered its price target for CoreWeave shares from $130 to $100 while maintaining its "buy" rating, according to Investing. This target implies a 105% increase in the stock price relative to the closing price on November 10.

CoreWeave posted strong results last quarter: revenue exceeded expectations, and its expenses grew at a slower pace than revenue, which Baird views as encouraging. Company management stated that it is confident in its current capital position. CoreWeave expects to receive prepayments from customers in the fourth quarter and anticipates additional revenue from flexible capacity contracts in 2027 and 2028.

Baird also considers CoreWeave a premium player in the AI infrastructure market. According to analysts, this advantage will become more pronounced next year, as the company’s ability to provide access to power capacity and its high-quality performance will come to the fore.

Analysts at Mizuho do not entirely agree with Baird; they have lowered their price target for CoreWeave shares from $88 to $68 while maintaining a “hold” rating, according to Investing. This target implies a 40% increase in the stock price. Mizuho attributed the target price cut to growing market and financing risks in the cloud AI provider sector.

CoreWeave has reaffirmed its commitment to its capacity expansion plans, despite the regulatory and financing situation, which Mizuho described as “dramatic.” According to analysts, the company could capture a significant share of the cloud AI provider market, which is growing at a pace “that makes servers melt.”

Mizuho believes that, in the long term, the stock could rise significantly in price. However, this potential is being held back by concerns about the financing of non-cloud providers and uncertainty regarding how much CoreWeave’s revenue might grow over the next 12 months.

CoreWeave shares jumped 24% during trading on November 11; year-to-date, they are down 16%.

According to MarketWatch, a total of 33 out of 47 analysts covering CoreWeave shares recommend buying them (Buy and Overweight ratings). Another 11 analysts recommend holding the stock (Hold), and three recommend selling it (Sell).

CoreWeave reported quarterly revenue of $3.66 billion, representing a 168% year-over-year increase, and a backlog of $132.5 billion. In addition, the company raised its full-year revenue forecast to $13–13.3 billion, exceeding analysts’ expectations.

These results helped the neo-cloud sector rebound from the recent sell-off: Nebius shares rose 17% on November 11, while IREN shares rose 9%.

This article was AI-translated and verified by a human editor