CoreWeave’s Strong Analyst Upgrades Post Major Deals
CoreWeave (NASDAQ: CRWV) saw its shares rise as much as 11.9% on October 2, 2023, before closing with an 8.3% gain, following multiple upgrades from Wall Street analysts. This surge was prompted by significant announcements, including a $21 billion long-term agreement with Meta Platforms through 2032 and a new customer deal with AI lab Anthropic.
Four analysts, including Bank of America, Macquarie, D.A. Davidson, and Roth Capital, raised their price targets for CoreWeave. Macquarie set its target at $125, up from $90, while D.A. Davidson increased its forecast from $125 to $175. This comes amidst accelerating demand for AI compute, with CoreWeave reportedly raising prices by 20% towards the end of 2025 and encouraging longer-term customer commitments.
Following their latest announcements, CoreWeave also successfully increased its capital through convertible and senior notes, upsized to $3.5 billion and $1.75 billion respectively, driven by strong investor interest. The solidified partnerships and growing demand indicate a bullish outlook for the company moving forward.
