Goldman Sachs upgraded CoreWeave to buy from neutral, citing overblown debt concerns after a sharp 25% weekly selloff. The cloud-computing provider's stock fell as its debt hit distressed levels and credit protection costs spiked. Shares rebounded 7.4% on Monday before falling 2%.
Analyst Gabriela Borges acknowledged financing questions but sees the stock as attractive, estimating the blended cost of debt could rise 100–200bps but likely not more. The firm cut its price target to $106 from $139, still implying over 40% upside. Deutsche Bank also called the drop a buying opportunity, especially after Nvidia CEO Jensen Huang praised CoreWeave's improving strength.
More than 70% of analysts recommend buying the stock.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing