Summary
- Mizuho Securities said it cut CoreWeave’s price target to $68 from $88 while maintaining a neutral rating.
- It said CoreWeave’s third-quarter revenue surged 168% from a year earlier to $3.66 billion, and its fourth-quarter earnings guidance also exceeded market expectations.
- It said near-term share-price gains may be limited by funding concerns in the neocloud industry and uncertainty over the pace of revenue growth over the next 12 months, though the stock still has long-term upside potential.
Forecast Trend Report by Period
Mizuho Securities of Japan lowered its price target on CoreWeave.
On Nov. 11, Mizuho cut its target price to $68 from $88 and maintained its neutral rating.
The brokerage cited broader funding concerns across the artificial intelligence cloud industry as the reason for the lower target.
The cut drew attention because CoreWeave posted a surprise earnings beat a day earlier, on Nov. 10. Third-quarter revenue was about $3.66 billion, up 168% from a year earlier. Its guidance for fourth-quarter revenue and operating profit also came in above market expectations.
Mizuho said CoreWeave is well positioned to secure meaningful market share in the AI cloud market.
Still, the brokerage said the stock's near-term gains may be limited. Funding concerns in the neocloud industry and uncertainty over revenue growth in the next 12 months remain overhangs, it said.
Over the longer term, however, Mizuho said the stock still has upside potential. It said CoreWeave remains well placed to capture meaningful share in the AI cloud market.
Wall Street's broader view remains positive. As of that day, 32 of the 42 investment banks covering CoreWeave had buy ratings on the stock. The average price target was $131.53, more than 169% above the previous session's close.
JOON HYOUNG LEE
