CORZ Has Major Upside Following Failed CRWV Takeover

Core Scientific (CORZ) has been upgraded to outperform from neutral by Macquarie following the collapse of its merger with CoreWeave (CRWV), with a price target raised by nearly 90% to $34. Analysts viewed the merger failure positively, allowing Core Scientific the flexibility to lease its power capacity to AI clients. Jefferies highlighted that securing new tenants would be essential for diversifying revenue and reducing dependence on CoreWeave. Core Scientific shares rose 4.5% in early trading. The firm manages a substantial power portfolio, including 590 megawatts leased to CoreWeave and an additional 1.5 gigawatts available for new clients. Management plans to sign a new colocation customer by the fourth quarter, which could significantly improve revenue diversification. Jefferies maintains a buy rating with a target price of $28, anticipating new contracts as the firm continues to expand its data center operations despite the failed merger.

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