CORZ Has Major Upside Following Failed CRWV Takeover

Core Scientific (CORZ) has been upgraded by Macquarie from neutral to outperform, with the price target raised almost 90% to $34 following the collapse of its merger with CoreWeave (CRWV). This failed merger is viewed positively as it allows Core Scientific to lease its power capacity to AI clients, enhancing revenue diversification. Core Scientific, which operates a 1.5 GW portfolio, is poised to sign new colocation customers by the fourth quarter, potentially accelerating revenue growth. Jefferies also maintained a buy rating on the stock with a price target of $28. The company’s management is optimistic, noting that the failed merger allows for fewer capital expenditures and a renewed focus on expanding its data center business. With plans to sign new tenant contracts by year-end, analysts anticipate this will diminish reliance on CoreWeave and enable Core Scientific to better leverage its 1.5 GW of existing and potential power capacity.

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