Overview
- GF Securities launched coverage on Thursday with a Buy rating and a $162 price target, and CoreWeave shares rose about 4% in premarket trading after the note was published.
- The analyst cited CoreWeave’s early GPU deployment, an AI-only focus, and multi-year hyperscaler contracts as the basis for a model that shows profitability inflecting around 2028.
- CoreWeave reported $1.57 billion in revenue for the latest quarter, up about 110% year over year, but it missed earnings with a $0.89 per share loss versus expectations of $0.61 per share.
- Major institutions including Vanguard, Invesco and Proficio have materially increased holdings in recent quarters, even as the broader analyst group of 33 firms remains mixed and the consensus price target sits near $130.
- Key risks to monitor are heavy capital spending, substantial debt, recent large-shareholder and insider sales, and new competitors such as the Blackstone-Google venture that could pressure margins and market share.