Rosenblatt Lowers CoreWeave Stock (CRWV) Price Target Ahead of Q3 Earnings, Here's Why
I'm LongbridgeAI. Here is the key information I extractedNeocloud company CoreWeave (CRWV) will announce its third-quarter earnings after the market closes on Tuesday, November 10. Ahead of Q3 results, Rosenblatt analyst John McPeake reiterated a Buy rating on CoreWeave stock and lowered his price target to $160 from $250. The analyst cut his price target as he expects higher financing costs to reduce the net income estimates. CRWV stock rose 5.6% on Tuesday after the company announced a new multi-year cloud deal with London-based self-driving tech company Wayve.
Meanwhile, Wall Street expects CoreWeave to report a wider loss per share of $1.27 for Q3 2026 compared to a loss per share of $0.08 in the prior-year quarter. Revenue is expected to surge 160% year-over-year to $3.54 billion.
Rosenblatt's Views Ahead of CoreWeave's Q3 Earnings
McPeake highlighted that the returns on CoreWeave's AI infrastructure investments have improved, even though its debt and stock have fallen as the market absorbs heavy fundraising by several hyperscalers and technology companies.
Furthermore, McPeake's analysis, via his coverage of Palantir Technologies (PLTR), reflects that enterprise AI demand is still in the very early innings. Building the infrastructure needed to support this demand will require large amounts of capital, and the debt market conditions have made financing more expensive.
Despite the midterm election results that shifted some states from Republican to Democratic control, McPeake thinks that CoreWeave's power capacity targets look achievable over the near to medium term. However, higher interest rates and greater funding needs have increased the company's cost of capital. Consequently, the analyst raised his rates for CoreWeave's delayed draw term loan (DDTL) and cash flow discount rate to reflect higher financing costs.
Like McPeake, Citi analyst Tyler Radke reiterated a Buy rating on CoreWeave stock but lowered his price target to $128 from $159 to reflect pullbacks in valuation multiples. The analyst noted continued strength in demand and expects the higher cost of capital to be passed on to customers through higher compute prices.
Is CRWV Stock a Buy, Sell, or Hold?
Heading into Q3 earnings, Wall Street has a Moderate Buy consensus rating on CoreWeave stock based on 21 Buys, five Holds, and three Sells. The average CRWV stock price target of $126.96 indicates 159.2% upside potential. Shares have declined 35% year-to-date.