After a strong run, CoreWeave stock may have limited room for further upside, according to Bank of America. The firm downgraded CoreWeave to neutral from buy on Monday, but increased its price target to $185 per share from $76, which suggests shares could rise 26% from Friday’s $147.19 close. “We acknowledge there are positive developments including: (1) a new hyperscaler customer; (2) expansion on OpenAI agreement; and (3) debt raise at lower cost of capital,” analyst Brad Sills wrote in a note to clients. “However, with stock trading at 25x CY27e EBIT, a premium to the peer group at 16x, we believe much of the upside is priced in.” CoreWeave went public in late March. CoreWeave’s $1.5 billion IPO raise marked the largest tech offering on Wall Street since 2021. CRWD YTD mountain CoreWeave stock since its March initial public offering. And while Sills said CoreWeave’s spending on artificial intelligence could be reaching its peak, he added that he still sees “solid sustained demand in CoreWeave’s AI infrastructure market.” Shares of the AI cloud-computing firm have surged more than 37% so far in June and were about 4% higher on Monday.
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