CoreWeave Stock Jumps on Bullish Analyst Upgrades Ahead of Earnings Report
CoreWeave (CRWV) is attracting positive attention from Wall Street ahead of its first-quarter earnings report this week, with two firms raising their price targets on the cloud-computing company's shares. Despite a recent rally, analysts believe the stock remains attractive, particularly given its growing pipeline of multibillion-dollar deals.
Bank of America increased its price objective to $140 from $120, suggesting a nearly 12% upside from Monday’s closing price. Jefferies followed suit, raising its target to $160 from $120, implying a 28% potential gain.
Jefferies analyst Brent Thill highlighted the company’s recent deals with Meta, Anthropic, and Jane Street, stating, “CRWV is set for a major [remaining performance obligation] step-up after announcing 3 deals in [April].” He emphasized the importance of consistent execution on revenue, margins, and active power, noting that checks indicate unrelenting demand for AI compute and CoreWeave’s edge in handling complex workloads.
Shares of CoreWeave have already surged 75% year-to-date as hyperscalers seek cloud-computing services for their AI-focused data centers. The company boasts a pipeline of commitments exceeding $95 billion, including a $21 billion agreement with Meta and a $6 billion deal with Jane Street.
Bank of America analyst Tal Liani pointed out that investors are focused on how efficiently CoreWeave converts its investments in capacity into recognized revenue, especially with a current remaining performance obligation (RPO) of $60.7 billion. Timely buildout execution and power availability are critical, as delays could impact revenue recognition.
Investors will be closely watching CoreWeave’s first-quarter earnings report, scheduled for release Thursday after the bell, for signs of progress on these initiatives. The consensus on Wall Street remains largely positive, with 28 out of 36 analysts covering the stock issuing buy or strong buy ratings, according to LSEG data.
