Key Takeaways
- Oppenheimer has kept its Outperform rating and $150 price target on CoreWeave through the selloff, 165% above the stock’s Nov. 12 close.
- CoreWeave is 59% below its May high after its bonds sold off, NVIDIA’s CEO resigned amid a board investigation, and interest kept outrunning operating income.
- At $150, CoreWeave would trade at 3.6x the sales analysts expect over the next twelve months, close to its average of the past year.
- The sales math holds, but shareholders get paid after lenders, and the next loan’s rate and the coming customer prepayments will show whether $150 is in reach.
CoreWeave (CRWV) is down 59% from its May high, and Oppenheimer still thinks it can more than double. Analyst Param Singh has kept his Outperform rating and $150 price target through the selloff, 165% above the stock’s $56.60 close on Nov. 12.
Lenders got nervous first
On Oct. 14, CoreWeave’s 9.625% notes due 2032 fell below 80 cents on the dollar, a yield near 15%.
Then on Nov. 8, the board of NVIDIA (NVDA) opened an investigation into reports involving CEO Jensen Huang, whose resignation was announced on Nov. 12. CFO Colette Kress is now interim CEO. That had investors asking how much CoreWeave leans on NVIDIA, which invested $2 billion in it in January and holds a $6.3 billion order for any capacity CoreWeave’s customers leave unused.
The third-quarter report on Nov. 10 beat its revenue guidance, but net interest expense of $846 million was more than double the $379 million of adjusted operating income. The stock still jumped 24.71% on Nov. 11, then gave back 6.86% on Nov. 12 as Huang’s exit hit AI cloud stocks.
Oppenheimer thinks the bond market got it wrong
In an Oct. 27 note, Singh put CoreWeave’s recoverable assets at about $83 billion, against about $42 billion of pro forma debt and $37 billion of other liabilities. His conclusion: even in an extreme liquidation, unsecured bondholders could get all their principal back.
He also read an A100 contract running into 2029 as a sign CoreWeave’s servers earn for about nine years, against the six its accounts assume.
TIKR tracks 41 analysts on CoreWeave. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on CoreWeave, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See CoreWeave’s Analyst Ratings
Does $150 add up?
Wall Street is less sure. The consensus price target was $131 on Nov. 11, down from $144 in August, and several firms cut their targets after the report:
Analysts expect revenue to go from $5.13 billion in 2025 to $44.6 billion in 2028:
They still see a GAAP loss of about $4.60 a share in 2027, wider than three months ago.
The stock trades at 1.3x the sales analysts expect over the next twelve months, against a 3.5x average over the past year:
At $150, it would trade at 3.6x those sales, just above that average.
Shareholders get paid after the lenders
But a full recovery for bondholders still leaves shareholders with only what’s left after them, with interest more than double adjusted operating income. CFO Nitin Agrawal calls operating income growing faster than interest “the path to earnings,” and management expects adjusted net income to turn positive in the first half of 2028.
Singh made the case for the bondholders, and shareholders need that gap to close before $150 looks reachable. Agrawal expects the next contract-backed loan in the coming weeks, at a 7% to 7.5% yield, plus about $9 billion of customer prepayments and deposits over the next three months. If both land as promised, the fourth-quarter report in early 2027 would make $150 a lot easier to believe, especially if adjusted operating income closes in on the $1.05 billion to $1.15 billion of interest guided for the quarter.
So what is CoreWeave stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
