Key Takeaways
- Piper Sandler kept its Overweight rating on CoreWeave and cut its target to $124, 100% above Tuesday’s close, after the stock lost 51% in a year.
- Piper’s target is reachable, but CoreWeave needs the bond market to calm down to get there.
- The latest drop came as CoreWeave’s bonds sold off, which put a spotlight on how it pays for its buildout.
- The target implies 3.5x forward sales, a bit below the stock’s average over the past year, while the consensus loss estimates keep getting bigger.
CoreWeave (CRWV) stock has lost 51% over the past year, closing at $62.13 on Tuesday. Piper Sandler thinks it can double from here.
The bond market got nervous
CoreWeave’s second quarter, reported on Aug. 11, showed what its growth costs. Revenue more than doubled from a year earlier to $2.58 billion, but interest expense jumped to $640 million from $267 million. And management expects to spend $35 billion to $39 billion on capex this year.
So the stock is exposed when lenders get nervous, as they did last week: CoreWeave fell 25% as its bonds sold off, and its bond yields and credit default swaps are still elevated.
Piper is sticking with it
Piper Sandler analyst James Fish kept his Overweight rating on Oct. 21 and cut his target to $124 from $153. That’s still 100% above Tuesday’s close.
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 $124 add up?
Most of the Street is on his side. The stock has been cut in half, yet the average analyst target has barely budged, slipping from $142 a year ago to just $138 today…
Analysts have also turned more bullish as the stock fell: 31 of 41 ratings are Buy or Outperform, up from 13 of 27 at the end of September 2025.
Revenue is expected to keep soaring, from $5.13 billion in 2025 to $43.0 billion in 2028…
CEO Michael Intrator said in August that “our near-term capacity remains effectively sold out.” The bottom line is another story: the consensus loss for 2027 has widened to $4.50 a share, from $3.67 90 days ago.
CoreWeave has no earnings to price. At 1.8x forward sales, it’s near the low of its past year, against an average of 3.8x and a peak of 8.1x in October 2025…
Piper’s $124 works out to 3.5x forward sales. That’s double today’s multiple, but still a bit below the stock’s average over the past year.
It comes down to credit
HSBC, the Street’s most bearish firm with a $39 target, argues that rising yields and worries in the debt market could keep neoclouds from building capacity on spec.
My take: Piper’s $124 is plausible, but the stock will need some help from the bond market to get there. A return to 3.5x only happens if lenders calm down, and the loss estimates are still heading the wrong way.
The next test is CoreWeave’s third-quarter report, expected in November. If margins keep expanding the way management promised and interest expense stays inside its $860 million to $940 million guide, $124 starts to look a lot more reasonable.
So what is CoreWeave stock actually worth?
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what CoreWeave could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use.
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!
