Freedom Broker Upgrades Core Scientific Inc. (CORZ) to Buy

Freedom Broker analyst Paul Meeks upgraded Core Scientific Inc. (NASDAQ: CORZ) from Hold to Buy with a price target of $33.00.

The analyst comments "CORZ reported its C26Q2. We were generally pleased with the company’s financial results and guidance. More importantly, CORZ added another major partner in AMD (AMD, $429.56, NR). To this point, the company had only been building capacity for CoreWeave (CRWV, $62.07, BUY, $151 PT). The AMD deal adds 530 MW to CRWV’s 590 MW to CORZ’s total leased power. Another reason we’re increasingly bullish on the stock is because the company is on pace, and perhaps a bit ahead of schedule, to delivering CRWV’s 590 MW of power, and over $10B in revenue over the 12-year contract’s term, by early 2027. At the end of the quarter, CORZ was just 150 MW short of this goal. If you follow CORZ and CRWV, you may recall that a “delay” in ramping capacity last fall caused CRWV to slightly rein in its 2025 revenue forecast, which was a black eye for both companies. Note that neither partner ever publicly outed the other. Nonetheless, in this business, even a whiff of being unable to add power on time and on schedule can be a death knell for these stocks, particularly after they’ve rallied. We didn’t like this stock at $30, so we had initiated coverage with just a HOLD, but we support it here at $18, so we’re upgrading CORZ to BUY. A 40% drop from its high isn’t all that finally caught our attention. The story has improved with further progression on the CRWV agreement, with CORZ now billing for 437 MW of power, and with the addition of the 530-MW deal with AMD. If you’re keeping score, the company now has $24B in revenue and 1.1 GW in power contracted. Its 437 MW already being billed is ahead of most of its comps."

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 $18.12 yesterday.

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