TLDR
- UBS analyst Karl Keirstead, ranked #357 out of 12,504 analysts, reiterated a Buy rating and $120 price target on CoreWeave.
- CoreWeave raised GPU hosting prices by 25% in July, then another 10% over the following months.
- The company’s revenue backlog stood near $104 billion before adding more than $25 billion in new Q3 commitments.
- Wall Street holds a Moderate Buy consensus on CRWV with an average price target of $138.78, implying strong upside.
- Insiders sold more than 6.4 million shares worth about $557.7 million over the past 90 days.
CoreWeave stock (CRWV) opened at $89.62 on Friday, sitting well below its 52-week high of $153.20. The AI cloud provider has been busy though, and Wall Street is taking notice.
CoreWeave, Inc. Class A Common Stock, CRWV
Five-star UBS analyst Karl Keirstead, ranked #357 out of 12,504 analysts tracked, has a Buy rating and $120 price target on the stock. His reasoning centers on something simple: CoreWeave keeps raising prices, and customers keep paying.
The company hiked hourly rates for its Nvidia GPUs by 25% in July. It followed that with another 10% increase over the next two to three months.
That’s not a typical move in a competitive market. It suggests AI computing capacity is still hard to come by.
CoreWeave said short-term contracts signed in the third quarter were worth about $40 million in annualized revenue per megawatt. That’s a hefty number, and it points to just how tight supply remains.
The Backlog Keeps Growing
The company had roughly $104 billion in revenue backlog at the end of June. That figure didn’t even include more than $25 billion in new customer commitments added early in the third quarter.
UBS believes this pricing trend isn’t unique to CoreWeave. The bank thinks it’s happening across the broader AI infrastructure market.
Still, the big question is whether companies can physically build enough capacity to meet demand. Local pushback against new data centers is one hurdle, as communities raise concerns about power consumption and construction.
Keirstead says checks across the industry suggest stronger operators can work through these issues. Financing is a separate story, though.
AI data centers cost a fortune to build before they ever generate a dollar of revenue. CoreWeave recently priced $3.7 billion in convertible notes due 2033, upsized from an original $3 billion offering, carrying a 2.875% interest rate.
The company also set up a program allowing it to sell up to 35 million shares over time for extra financial flexibility.
Earnings and Analyst Targets
CoreWeave posted its last quarterly results on August 11. The company reported a loss of $1.14 per share, beating the consensus estimate of a $1.52 loss.
Revenue came in at $2.58 billion, up 112% from the same quarter last year. Despite the growth, CoreWeave posted a negative return on equity of 47.95% and a negative net margin of 25.41%.
Several brokerages have weighed in since. Citigroup raised its target to $159, JPMorgan lifted its rating to overweight with a $125 target, and Wells Fargo pushed its target to $160.
Wall Street’s consensus sits at Moderate Buy, with an average price target of $138.78. That’s built from 23 Buy ratings, nine Holds, and three Sells.
On the flip side, insiders haven’t been shy about cashing out. CEO Michael Intrator sold 200,000 shares in July at $78.23 each, and major shareholder Magnetar Financial sold over 307,000 shares in August.
In total, insiders have sold more than 6.4 million shares worth roughly $557.7 million in the past 90 days. CoreWeave’s current market cap sits at $41.12 billion, with a debt-to-equity ratio of 5.53.
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