H.C. Wainwright Reiterates Buy Rating on Core Scientific Inc. (CORZ)

H.C. Wainwright analyst Kevin Dede reiterated a Buy rating and $17.00 price target on Core Scientific Inc. (NASDAQ: CORZ).

The analyst commented: "During market trading on March 10, Core Scientific's stock (CORZ) took a flyer on the news that its key HPC customer, CoreWeave, had signed a $12B, five-year deal with OpenAI, the author of artificial intelligence software ChatGPT. The rise ChatGPT has had over the past two years and the context in which the software operates is generally well understood, so no time wasted describing that phenomenon here. As trading opened yesterday, CORZ slid about $1 to the $6.50 level because of, we suspect, the ongoing negative sentiment and a 5% sell-off in the Nasdaq. But as the day pressed on, other items came to the fore we believe should both support CORZ current trading levels and push them higher toward our $17 price target—note, there are no estimate or target changes here. Important in understanding Core Scientific's position is the integrity of its prime high-performance compute customer, CoreWeave. CoreWeave hit the ground running as an Ethereum mining operation when that blockchain ran on proof-of-work consensus, similar to bitcoin, prior to “the merge” that migrated the consensus algorithm to proof-of-stake. Just a bit more than week ago, CoreWeave filed an S-1 for its initial public offering at a value of $35B, strongly signaling its proficiency in networking development based on its GPU history, relationship with Nvidia (NVDA; not rated), and most importantly, its customer base. In 2024, CoreWeave generated $1.92B in revenue and 62% margins, up from $228M in 2023 with Microsoft (MSFT; not rated) and Meta (META; not rated) accounting for 77% of revenue as the company's two top customers, as we figure the situation. Core Scientific carries a strong execution reputation, and we reiterate our Buy rating and our $17 price target."

For an analyst ratings summary and ratings history on Core Scientific Inc. click here. For more ratings news on Core Scientific Inc. click here.

Shares of Core Scientific Inc. closed at $8.63 yesterday.

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