Jefferies on CoreWeave (CRWV): 'We see an attractive risk/reward profile'

Jefferies analyst Brent Thill reiterated a Buy rating and $120.00 price target on CoreWeave (NASDAQ: CRWV)

The analyst comments "Key takes: NVDA and CRWV deepened their partnership as NVDA helps CRWV push toward >5GW of AI factories by 2030, well above today’s ~2.9GW. NVDA’s support on land & powered shells should ease execution risk & help scaling. NVDA will also help take CRWV’s SUNK/Mission Control software to mkt, creating a high‑margin, asset‑light growth avenue. NVDA’s stake rises to ~9% (from ~7%), underscoring its conviction in CRWV as a strategic partner, not just a reseller. NVIDIA will support CRWV in accelerating the development of >5 GW of AI factories by 2030. With CRWV currently holding ~2.9 GW of contracted power as of last quarter, this partnership marks a meaningful expansion of the company’s growth trajectory. Management noted that while its financing approach remains unchanged, NVIDIA’s involvement - particularly in land and powered‑shell procurement - is a significant unlock that should help its execution against this buildout. We note that NVDA disclosed in Q3 that they entered into an agreement to guarantee a partner's facility lease backed by its credit profile, showcasing an example of how this partnership could work. New high‑margin software opportunity: NVIDIA will also help distribute CRWV’s software offerings, including SUNK and Mission Control, to its cloud service provider and enterprise customer base. CRWV highlighted that this opens a high‑margin, asset‑light revenue stream and creates an on‑ramp for customer acquisition by increasing familiarity with the platform. While still early, management expressed optimism about the long‑term potential of this channel. NVDA ownership grows to ~9% with the $2bn investment vs ~7% at IPO. We view the increased equity exposure positively, as it signals NVIDIA’s confidence in CRWV’s capabilities and underscores CRWV’s strategic relevance to major AI labs. Attractive risk/reward. We see an attractive risk/reward profile, with CRWV now trading at 12x our rolled-forward EV/CY28 EBIT, compared to MSFT and ORCL at 17x and 11x, respectively, particularly given an execution-driven story with potential upside to ests on RPO growth."

For an analyst ratings summary and ratings history on CoreWeave click here. For more ratings news on CoreWeave click here.

Shares of CoreWeave closed at $98.31 yesterday.

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