Evercore ISI Reiterates Outperform on CoreWeave (CRWV) with $175 Price Target

CoreWeave, Inc. (NASDAQ:CRWV) is one of the Trending AI Stocks on Wall Street. On October 8, Evercore ISI analyst Amit Daryanani reiterated an Outperform rating on the stock with a $175.00 price target.

The firm is bullish on the stock, calling its profitability model strong based on its durable contracts, Nvidia’s backing, and long-term GPU demand.

“We think it is worth revisiting the topic of unit economics for CRWV, especially given investor concerns surrounding profitability/business model following yesterday’s Information article discussing the (low) profitability of ORCL’s GPU cloud business. Despite the capex intensity/debt financing required to deploy GPU clouds, we view CRWV’s model as durable, risk-managed, and profitable at scale even when taking high levels of depreciation expenses into account. Key considerations: 1) Multi-year Take-or-Pay/Noncancelable Contracts: CRWV sees an average 4-year duration for customer contracts (have been trending more toward 5 or more for more recent deals). 2) Built-to-Suit, Not On Spec: CRWV’s capacity is built not on spec and only developed once customer contracts are signed; the company typically receives prepayments equating to ~15–25% of TCV to fund initial capex requirements (GPUs, DC capacity). 98% of revenue is from reserved capacity. 3) NVDA MSA Provides Margin of Safety: In the event that CRWV does have unutilized capacity, NVDA is obligated to purchase the residual unsold capacity through April 2032."

CoreWeave, Inc. (NASDAQ: CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.

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