CORZ Has Major Upside Following Failed CRWV Takeover

Macquarie has upgraded Core Scientific (CORZ) to outperform, raising its price target from $18 to $34 after the unsuccessful merger with CoreWeave (CRWV). This outcome is viewed positively as it provides Core Scientific with the flexibility to lease its power capacity to AI tenants, diversifying revenue streams. Following the merger's failure, shares of Core Scientific rose approximately 4.5%. The company's portfolio includes 1.5 gigawatts of capacity, with 590 megawatts previously leased to CoreWeave, and expectations are set to secure new colocation customers by the fourth quarter. Jefferies analysts also noted that signing new tenants would be crucial for revenue diversification and reducing reliance on CoreWeave. The direction post-merger indicates a renewed focus on expanding its data center business.

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