Morgan Stanley Analyst Raises CoreWeave Stock Target Post Q3 Earnings
Morgan Stanley analyst Keith Weiss has increased his price target for CoreWeave (CRWV) to $99, up from $91. This adjustment follows a positive assessment of CoreWeave’s Q3 earnings and signifies growing optimism about the firm’s integral role in the developing generative AI landscape.
CoreWeave’s Q3 Performance and Stock Reaction
Despite the earnings surpassing expectations, CoreWeave’s stock experienced a 16.3% decline. This drop was triggered by a delay in the construction of a third-party data center, which consequently caused the company to slightly adjust its revenue forecast for 2025.
Analyst Perspectives on CoreWeave
Weiss’s perspective is notable, especially as many analysts opted to lower their price targets following the earnings announcement. He believes that strong demand from leading generative AI clients supports CoreWeave’s position in the growing GPU infrastructure market.
- Strong demand from top clients.
- Reduction in customer concentration risk due to deals with Nvidia (NVDA) and Meta (META).
- No single client contributes more than 35% to revenue backlog.
While Weiss expresses caution regarding the company’s challenges in consistent execution and scaling GPU infrastructure within a constrained supply environment, he remains hopeful. He suggests that a dip in CRWV stock could offer a promising opportunity for long-term investors who believe in the ongoing GPU boom.
Market Sentiment and Analyst Consensus
Since its IPO in March, CoreWeave’s stock has surged over 138%, reflecting heightened investor optimism. In terms of market sentiment, Wall Street maintains a Moderate Buy consensus on CRWV stock. This consensus is based on:
- 12 Buys
- 13 Holds
- 1 Sell
The average price target for CoreWeave stands at $149.29 per share, indicating a potential increase of 68.9% from its current valuation. Investors are keenly watching CoreWeave’s developments as it navigates the challenges and opportunities in the GPU infrastructure sector.
