Coreweave (CRWV) stock is facing pressure from Wall Street analysts after a recent guidance cut. This situation follows comments from CEO Mike Intrator who mentioned that, apart from a single delay with one data center provider, everything during the quarter went as planned. Yet, despite this clarification, analysts have adjusted their price targets downward due to reduced earnings expectations.
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Loop Capital analyst Ananda Barua maintained a buy rating but revised the price target from $165 to $120, indicating a potential upside of 40.5%. He referenced ongoing “unstable developments” as the main reason for this change, suggesting that these issues could persist until 2026.
Wells Fargo’s analyst Michael Tulin also kept his buy rating but lowered his price target from $170 to $150, allowing for an upside of 75.6%. Like Barua, Tulin pointed to delays with third-party data centers as a factor.
Analyst Reactions and Corporate Challenges
While analysts express confidence in Coreweave’s long-term prospects, they’ve lowered price targets due to short-term obstacles. CoreWeave recently trimmed its 2025 revenue forecast from $5.25 billion to $5.1 billion, citing delays from external builders as a reason for reducing planned capital expenditures by $8.5 billion. This led to a sharp 19% drop in CRWV stock over two days.
The specific names of the delayed providers weren’t disclosed; however, CNBC’s Jim Cramer speculated that it might involve Core Scientific (CORZ), a firm CoreWeave had expressed interest in acquiring previously.
Reason for Lowering Target Price
Barua explained that the revisions in forecasts were necessary because the inconsistent development may extend to 2026. He highlighted the restricted availability of powered shells as a more pressing bottleneck than power supplies. Even though this may slow equipment deployment, Barua noted that the delay is due to logistical challenges rather than weak demand or technical difficulties.
Tulin acknowledged that while one delay at a data center could hinder short-term progress, the overall situation remains positive. He pointed out that the company’s GPU economics—how effectively it utilizes its graphics processing units—are stable. Furthermore, he anticipates that capital investment may pick up in 2026, as CoreWeave is consistently securing power resources and acquiring new business for sustainable long-term growth.
Is CoreWeave a Good Stock to Buy?
Analysts seem split on CoreWeave’s long-term viability. According to TipRanks, the CRWV stock holds a Moderate Buy consensus rating, based on 12 Buys, 13 Holds, and 1 Sell. The average price target stands at $145.75, suggesting a potential upside of 70.6% from current levels. It’s worth noting that since the start of the year, CRWV stock has actually surged over 130%.
