Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Investment bank Macquarie upgraded Core Scientific (CORZ) to outperform from neutral and raised its price target on the stock nearly 90% to $34 from $18 following the collapse of the CoreWeave (CRWV) deal.
The failed merger between Core Scientific and CoreWeave came as no surprise after reports and proxy advisories indicated shareholder opposition, analysts Paul Golding and Marni Lysaght wrote in the report Thursday.
Analysts at the bank saw the result as positive, giving Core Scientific more flexibility to lease its power capacity cheaply to AI tenants.
Shares of Core Scientific were 4.5% higher in early trading, around $21.70.
Analysts noted that the bitcoin miner’s 1.5 gigawatt (GW) portfolio includes 590 megawatts (MW) leased to CoreWeave and another 1 GW gross, about 700 MW billable, under load study.
Management expects to sign at least one new colocation client by fourth-quarter earnings, a move Macquarie said could accelerate revenue diversification and highlight the company’s edge in high-performance computing buildouts.
Jefferies said Core Scientific is moving forward with renewed focus after shareholders voted down its proposed merger with CoreWeave.
The bank noted that Core Scientific will exit the process with 1.5 GW of existing and planned billable power capacity and little capital expenditure related to the now-defunct deal.
During the merger talks, the miner continued to expand its data center business and is now set to sign new tenants and power contracts by the end of the year, analysts led by Jonathan Petersen wrote in the report on Thursday.
Signing a new tenant would be a key milestone in diversifying revenue and reducing dependence on CoreWeave, the report said.
Jefferies has a buy rating on Core Scientific stock with a price target of $28.
Read more: Core science shareholders are poised to reject the CoreWeave merger, says Jefferies
