CoreWeave (CRWV) PT Lowered to $41 at HSBC

HSBC analyst Abhishek Shukla lowered the price target on CoreWeave (NASDAQ: CRWV) to $41.00 (from $44.00) while maintaining a Reduce rating.

The analyst comments: "We increase our interest cost estimates for CoreWeave because c250bp widening in CoreWeave’s credit default spreads (CDS) as of 3Q25 suggests the company will need to pay more than 10% yield for any fresh debt it tries to raise. The company was able to raise fresh debt at about 9% effective interest cost in 3Q25, which had prompted us to model a declining effective interest rate for the company; an assumption that is no longer tenable, in our opinion. The company raised USD2bn of equity (from NVDA) in January 2026 and issued 1.75% convertible notes in December 2025, which is likely to keep a lid on its interest costs. We assess that CoreWeave still faces a liquidity shortfall of USD9.8bn in 2026e. Consequently, we expect the company will need to borrow more funds at current higher yields, which is likely to increase its effective cost of debt. Consensus continues to assume that the effective interest rate on debt for CoreWeave will dip to 7.7% in 2029e from 9.9% in 3Q25.

We lower our 2027-30e non GAAP EPS estimates by 12-33% (on a very low base) due to higher interest expense. 2026e non-GAAP EPS, however, rises to USD0.15 (from negative USD0.06) on lower debt. Our 2027-30e non-GAAP EPS estimates remain 58-92% below consensus."

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