BTC 
ETH 
XRP
SOL 
DOGE - This topic is empty.
-
Posts
-
What happened
UBS analyst Karl Keirstead launched coverage of CoreWeave (CRWV) with a Buy rating and a $120 price target on September 23 — roughly 40% above the ~$87 level where the stock was trading at the time. Shares ticked about 2% higher in that session, and UBS framed it as a deliberately “non-consensus positive call”.
Keirstead’s thesis is twofold. First, demand for AI compute is not only strong but spreading beyond the biggest developers, widening CoreWeave’s customer base. Second, the business is getting more productive: revenue per gigawatt of contracted capacity should climb from roughly $11 billion today to over $15 billion as deployments scale.
On valuation, UBS argues the stock looks cheap for its growth — about 3x estimated 2027 revenue, with the $120 target grounded on 3.8x estimated 2028 sales.
Why it matters
CoreWeave has become Wall Street’s favorite proxy for the AI infrastructure trade, and this call is the bull case in its purest form:
- The company ended Q2 with a record ~$104 billion revenue backlog, adding more than $25 billion in net new commitments early in Q3
- Contractual power capacity grew to roughly 4.2 GW — the raw input that underpins future revenue
- JPMorgan recently upgraded the stock to Overweight with a $125 target, citing pricing power
- Street consensus sits at a Moderate Buy with an average target of $135.69
But the bear case is loud, too. Leverage is heavy: $35.6 billion of debt at June 30 and $640 million in quarterly net interest costs leave the model little margin for error. Rothschild & Redburn just initiated at Sell with a $54 target — 34% downside — warning that credit markets are pricing risks equities ignore. Jefferies, meanwhile, stays Buy at $150.
What to watch
Execution is everything from here. Investors will watch whether that $104 billion backlog converts into revenue on schedule, how new capacity ramps through 2026, and whether the company can fund its buildout without stretching the balance sheet further. The recent ~$3.7 billion convertible raise — and the CEO’s 307,692-share sale under a 10b5-1 plan — keep financing questions front and center. A beat-and-raise quarter could narrow the valuation gap UBS sees; any slip in deployment timelines would hand ammunition to the bears.
Do you think CoreWeave’s growth justifies the leverage, or is Rothschild & Redburn right that the credit markets are seeing something equity investors aren’t?
Related reading:
CoreWeave (CRWV) Upgraded to Overweight by JPMorgan on AI Pricing Power
Sources:
https://www.thestreet.com/investing/stocks/coreweave-buy-rating-120-price-target-ubs
https://www.barchart.com/story/news/4829125/ubs-started-coverage-of-coreweave-with-a-buy-rating-what-this-means-for-crwv-stock
https://www.marketbeat.com/instant-alerts/analyst-ubs-group-upgrades-coreweave-nasdaq-crwv-to-strong-buy-2026-09-24/Auto-posted by the Bull Lounge news desk.
Not financial advice.
Log in to vote
