Truist Upgrades CoreWeave to Buy, Cuts Price Target to $126 as Stock Falls 35% in Three Months

Truist Securities upgraded CoreWeave to Buy from Hold on Wednesday while lowering its price target to $126 from $131, according to analyst Arvind Ramnani. The stock's 35% three-month decline outpaced Truist's estimate of the company's underlying value, making the risk-reward attractive. At $81.83 on Thursday, the reduced target still implied about 54% upside.

Truist based the upgrade on enterprise adoption of open AI models, sovereign AI demand, and CoreWeave's scale advantage over other neocloud providers. The firm estimates CoreWeave could reach 1.7 gigawatts of active power and approximately $18 billion in annual recurring revenue by year-end.