Rosenblatt on $CRWV
initiates coverage with a Buy rating and a $250 price target.
CoreWeave is positioned as the leading AI operating system provider, with significant revenue growth and backlog.
The company's pricing power is expected to increase due to advancements in compute capabilities and efficiency. Despite leverage, innovative financing structures are in place.
The report initiates coverage with a Buy rating and a $250 price target.
Rosenblatt Initiates Coverage on $CRWV with Buy Rating, PT $250
Analyst comments: "CoreWeave looks increasingly like the de facto operating system for AI, and we see upside to $250 over one year for CRWV. With over 1GW of active power and 3.5GW of contracted power, CoreWeave is the largest dedicated AI infrastructure provider.
The company is doubling revenue year-over-year, and backlog was $100B at 1Q26 versus our forecast of $12.8B in revenue this year. Given the rapid improvement in compute capabilities being delivered by NVIDIA and others, we think the best way to model the company is on H100 equivalents available and the company’s pricing power through availability, technology stack, and incumbency.
Our analysis suggests that the value per unit of work delivered by CoreWeave has remained relatively constant despite significant decreases in the amount of electricity and depreciation required to deliver those units of work. Over time, we think the company will be able to grow pricing somewhat while compute capacity per megawatt increases substantially.
The company is using a relatively large amount of leverage to deliver its growth, but innovative DDTL (delayed draw term loan) structures should lower the risk to the company appreciably. At 3.2x 2027 EV/revenue and with revenue growing at a 77% CAGR through 2030, the long-term growth in free cash flow supports well more than a doubling from current levels.
We are initiating coverage on CoreWeave with a Buy rating and a $250 price target."
Analyst: John McPeake
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