CORZ Has Major Upside Following Failed CRWV Takeover

Core Scientific has been upgraded to an outperform rating from neutral by Macquarie, with its price target raised sharply to $34 following the collapse of its merger with CoreWeave. This failed merger is viewed positively as it allows Core Scientific the flexibility to lease its power capacity to AI tenants instead of being tied to CoreWeave. The company has a 1.5 gigawatt portfolio and is expected to sign at least one new colocation customer by the end of the fourth quarter, which could diversify revenue streams and decrease reliance on CoreWeave. Analysts noted the firm’s continued expansion during the merger discussions, positioning it well for future growth. Jefferies also maintains a buy rating with a $28 target, highlighting the potential for revenue diversification through new tenant agreements.

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