CORZ Has Major Upside Following Failed CRWV Takeover

Core Scientific (CORZ) has been upgraded to an outperform rating by Macquarie following the collapse of its merger with CoreWeave (CRWV). The bank raised its price target for the stock from $18 to $34, indicating a potential upside of over 50%. This merger failure is viewed positively as it allows Core Scientific to leverage its capacity for leasing power to artificial intelligence tenants. Analysts anticipate that Core Scientific, which maintains a 1.5 gigawatt (GW) power portfolio, can diversify its revenue by signing new colocation customers. The company is actively expanding its data center operations and plans to finalize agreements for new tenants by the end of the year. Jefferies also expressed a positive outlook, emphasizing the importance of signing new tenants to reduce dependence on CoreWeave. Core Scientific shares saw a 4.5% rise to approximately $21.70 in early trading, reflecting investor optimism following the analysts' reports.

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