Key Takeaways
- CoreWeave stock is down 65% from its May high. On Nov. 9, Wells Fargo cut its price target to $115 from $160 and kept its Overweight rating.
- Wells Fargo’s target works out to 3.2x forward sales, a bit under CoreWeave’s 3.5x average over the past year, and analysts keep raising their revenue estimates.
- Over the last 90 days, analysts’ expected 2027 loss widened to $4.70 a share from $3.90, and CoreWeave’s bonds now yield more than 16%.
- The 3.5x average came when CoreWeave could borrow at under 10%. A move to $115 within a year looks unlikely until it can borrow near those rates again.
CoreWeave (CRWV) is down 65% from its May high, and on Monday, Nov. 9, Wells Fargo cut its price target to $115 from $160. The bank kept its Overweight rating, though, and even the lower target is 136% above the stock’s price of about $49.
First the Bonds, Then the Midterms
The slide started in CoreWeave’s bonds. Its 9.625% notes due 2032 yielded 14.8% on Oct. 14, and by Friday, Nov. 6, the 2032 notes yielded more than 16%. That hurts a company that borrows to buy GPUs before customers pay for them.
Then came last week’s midterms. Democrats won both chambers of Congress and the Texas governor’s race, and investors started rethinking the data center build-out in the US, home to 88% of CoreWeave’s long-lived assets and 93.6% of its 2025 revenue. CEO Michael Intrator has already written to Texas Governor-elect Gina Hinojosa about the company’s projects there, Bloomberg reported over the weekend.
TIKR Tracks 42 Analysts on CoreWeave. How Many Say “Buy”?
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Wells Fargo Still Likes the Business
Analyst Michael Turrin cut the target ahead of CoreWeave’s third-quarter report on Tuesday, Nov. 10. The bank still calls CoreWeave the best company among the neoclouds and expects its revenue and compute capacity to beat expectations. Turrin isn’t blind to the debt, either: in a mid-October note, Wells Fargo estimated CoreWeave’s net debt would top $200 billion by the end of 2030. And $115 is below Friday’s $132 average target, which has fallen from $144 a year ago:
Does $115 Add Up for CoreWeave?
On sales, it does. Analysts expect revenue to about double, from $12.9 billion in 2026 to $26.5 billion in 2027, and that 2027 figure is up from $18.1 billion a year ago:
Earnings estimates are moving the other way: over the last 90 days, the consensus loss for 2027 widened to $4.70 a share from $3.90. With no profit to price, CoreWeave trades on forward sales. At 1.3x as of Friday’s close, it’s near the bottom of its range for the past year:
Wells Fargo’s $115 works out to 3.2x forward sales, a bit under the stock’s 3.5x average over that year. So the target needs only a normal multiple on revenue estimates that keep going up.
CoreWeave Needs Cheaper Debt First
But that 3.5x average comes from a year when CoreWeave could sell unsecured bonds at under 10%: 9.75% in April and 9.625% in June. Shareholders get what’s left after interest, and consensus has CoreWeave’s 2027 interest bill at $5.3 billion, more than its $4.1 billion of operating profit.
Wells Fargo has the business right. Still, $115 asks investors to pay what they paid when CoreWeave borrowed under 10%. I wouldn’t count on that within a year until its next bond prices near those rates.
The first test comes Tuesday after the close. Management guided third-quarter adjusted operating income of $200 million to $260 million against $860 million to $940 million of interest. A beat with interest held to the guide would start to close that gap.
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!
