UBS Initiates CoreWeave Coverage with $120 Target
UBS started covering CoreWeave with a Buy rating and a $120 target, citing strong AI demand despite high debt concerns.
Key points
- UBS initiated CoreWeave coverage with a Buy rating and a $120 price target.
- CoreWeave shares rose 1.96% to $88.46 following the new analyst report.
- Analyst price targets range from $54 to $250, showing deep market disagreement.
CoreWeave shares rose 1.96% to $88.46 on Wednesday. The move followed UBS initiating coverage with a Buy rating. The bank set a price target of $120 per share. This action marks a fresh entry into the AI infrastructure sector for the firm.
Analyst Karl Keirstead built the case on steady demand for AI computing power. He expects revenue per gigawatt of capacity to keep rising. The stock trades at a 3x multiple on 2027 revenue, showing market doubt. UBS views credit risks as stabilizing rather than worsening.
Analyst views remain widely split
The broader market holds a Buy consensus from 50 analysts. They average a target of $139.60. Individual predictions vary significantly, ranging from $54 to $250. This spread highlights deep uncertainty about the company's future valuation and debt burden.
Rothschild initiated coverage with a Sell rating on September 21. They set a low target of $54. Rosenblatt maintained a bullish $250 target since September 18. UBS joined the bull camp on September 23, creating a nearly $200 gap between extreme views.
Stock reaction reflects new coverage
Benzinga reports CoreWeave stock traded at $88.46. The shares gained 1.96% during the session. This rise aligns with the new UBS report. The data center operator faces a divided Wall Street but benefits from initial institutional interest.
