CoreWeave Inc (NASDAQ:CRWV) stock is down 2.7% to trade at $72.76 out of the gate, even after Oppenheimer initiated coverage on the AI cloud specialist with an "outperform" rating and $140 price target. The analyst in coverage waxed optimistic on the company's hyperscaler positioning and outsized TAM opportunity in the infrastructure-as-a-service (IaaS) space.
Yesterday, however, Bernstein initiated coverage on CRWV with a "sell" rating and $56 price target, citing "meaningful" overvaluation risks. The analyst attention comes just as a fraud class action lawsuit was filed against the company by equity owners, and one week after a mixed reaction to its Q4 report.
CRWV has a multi-month floor of support around $70. Today's drop has the shares testing their year-to-date breakeven level, though CRWV has shed roughly 50% in the past nine months.
Prior to the adjustments, the brokerage bunch were leaning bullish. Currently 17 of the 30 in coverage sport a "buy" or "strong" buy recommendation, while the stock's average 12-month price target of $122.16 is a 68% premium to current levels. In other words, should this bullish sentiment begin to unwind, it could trigger more headwinds for the shares.
