Loop Capital Starts CoreWeave (CRWV) Coverage at Buy, Sets $165 Price Target

CoreWeave Inc. (NASDAQ:CRWV) is one of the best performing data center stocks to buy now. On September 19, Loop Capital analyst Ananda Baruah initiated coverage on CoreWeave (NASDAQ:CRWV) with a Buy rating and a $165 price target, citing meaningful earnings potential and the likelihood of valuation multiple expansion over time.

Baruah said that CoreWeave is positioned as the largest among a small group of “Neocloud” providers, a category increasingly central to NVIDIA, major hyperscalers, and leading AI labs building frontier models. He argued that investor sentiment undervalues the depth of commitment from hyperscalers and AI labs to next-generation innovation, particularly as NVIDIA’s Blackwell architecture scales and new demand emerges from sovereign cloud initiatives.

The analyst’s projections underscore this view. For 2027, he pencils in revenue and EBITDA at $17.9 billion and $12.8 billion, respectively, marginally above consensus estimates of $17.8 billion and $12.7 billion. The $165 target implies 10x EV/EBITDA on 2027 numbers, a valuation the analyst believes will be supported by continued demand for high-performance cloud infrastructure.

CoreWeave (NASDAQ:CRWV) provides cloud infrastructure built for GPU-intensive workloads such as artificial intelligence, machine learning, and visual effects. Founded in 2017, it operates data centers in the U.S. and Europe and serves enterprise and research clients under long-term agreements.

While we acknowledge the potential of CRWV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.