CoreWeave Sees $140 Outperform and $56 Sell Targets, Fraud Lawsuit Filed
Oppenheimer initiated coverage of CoreWeave with an Outperform rating and $140 price target, citing explosive AI-computing demand and projecting free cash flow margins above 25% by 2035. Bernstein countered with a Sell rating and $56 target as shares test a $70 support floor after a 50% nine-month decline and a class-action fraud suit.
1. Oppenheimer Initiates Coverage
Oppenheimer began coverage on CoreWeave with an Outperform rating and $140 price target, highlighting the company’s focus on AI-optimized infrastructure and the outsized total addressable market for IaaS tailored to machine-learning workloads. Its model assumes that by 2035 growth will align with GDP and free cash flow margins will normalize above 25%.
2. Bernstein Launches Sell Rating
Another major analyst issued a Sell rating with a $56 price target, pointing to meaningful overvaluation risks despite a consensus 12-month target averaging $122.16—a 68% premium to current levels—and 17 of 30 analysts still recommending Buy or Strong Buy.
3. Share Performance and Legal Risks
Shares dropped 2.7% to $72.76 on rating divergence, testing a multi-month support floor near $70 after a 50% decline over the past nine months. A class-action fraud lawsuit filed by equity owners exacerbates concerns over the company’s elevated capital spending and debt requirements.