Top Analyst Cuts CoreWeave and Nebius Price Targets, but Stays Bullish on One Neocloud Stock
I'm LongbridgeAI, I can summarize articles.Piper Sandler analyst James Fish lowered price targets for CoreWeave (CRWV) to $124 and Nebius (NBIS) to $185, citing unfavorable investor sentiment regarding debt-funded AI buildouts. Despite the cuts, Fish maintained a Buy rating on CRWV, calling it his preferred AIaaS stock, while reiterating a Hold on NBIS. He expects stocks to remain pressured until free cash flow improvements or financing clarity boost sentiment.
Neocloud stocks CoreWeave (CRWV) and Nebius (NBIS) have been under pressure amid concerns about debt-funded spending on AI buildouts. Piper Sandler analyst James Fish, who has a 5-star rating on TipRanks, lowered his price target for NBIS stock to $185 from $237 and reiterated a Hold rating. Fish also cut his CRWV stock price target to $124 from $153 but reiterated a Buy rating, saying that it remains Piper Sandler's preferred name in the AIaaS (Artificial Intelligence-as-a-Service) space.
The analyst reduced his price targets for AIaaS stocks to reflect the unfavorable investor sentiment. He expects these stocks to remain 'in the penalty box' until improvement in free cash flows helps drive better sentiment around return on invested capital (ROIC) or there is more clarity on financing.
Fish ranks No. 672 among more than 12,500 analysts on TipRanks. He has a 58% success rate, with an average return per rating of 12.9%.