Truist upgrades CoreWeave to buy, cuts target to $126

According to CNBC, Truist Securities upgraded CoreWeave to buy from hold and lowered its price target on the cloud infrastructure company to $126 from $131. The new target still implies 58% upside from Tuesday's close. Analyst Arvind Ramnani said the stock's risk-reward looks attractive because of enterprise adoption of open models and sovereign AI, a discount to neocloud peers despite CoreWeave's leadership position, and potential for margin expansion if current 6-year GPU depreciation cycles prove conservative. Shares have fallen 35% over the past three months and are about 48% below their 52-week high of $153.20. The decline followed CoreWeave's early May report that interest expense more than doubled in the first quarter, while July selling pressure came after Meta said it would sell excess artificial intelligence computing capacity to third-party developers. Ramnani said Meta is likely to keep its existing contracts, and if it does not renew, other enterprises are expected to absorb the capacity.