CoreWeave shares rose more than 6% in premarket trading Monday after Goldman Sachs upgraded the AI cloud provider to Buy from Neutral.
The stock had fallen 24% over the prior five trading sessions as investors weighed its debt load and the high cost of financing its expansion.
Goldman said investor concerns about financing risks may be overstated. The firm cited strong contract economics and expects annual recurring revenue per megawatt to increase over the next two years, supported by tight supply and CoreWeave’s competitive performance.
Despite the upgrade, Goldman lowered its price target to $106 from $129, citing a tougher financing environment.