Shares of IT name CoreWeave Inc (NASDAQ:CRWV) are up 1.3% to trade at $80.31, after an upgrade from D.A. Davidson to "neutral" from "underperform." The analyst also hiked its price target to $68 from $36, citing the company's recent cloud computing deals, which have raised a significant value of $22.4 billion. This brokerage is famously skeptical toward CoreWeave stock, making today's upgrade even more noteworthy.
CRWV snapped a six-day losing streak on Friday. Despite sporting a nine-month lead of 61%, the stock has been unable to break out above the $90 level, even after a boost from its recent partnership with the U.S. Department of Energy.
More upgrades could be coming, too. Heading into today, 14 of the 29 brokerages in coverage carried a "hold" or worse recommendation. Should this bearish sentiment continue to unwind, more tailwinds could be in store.
Short interest has continued to surge, up 44.4% over the past two reporting periods, now accounting for 15.2% of the stock's total available float. At the security's average pace of trading, it would take shorts two days to buy back their bearish bets.
Options on CoreWeave stock are looking affordable, per the stock's Schaeffer's Volatility Index (SVI) of 83%, which sits higher than just 13% of readings from the last year.
