Goldman Sachs Upgrades CoreWeave to Buy After Last Week's Slide, Cuts Target to $106

Goldman Sachs analyst Gabriela Borges upgraded CRWV to Buy from Neutral on Monday, October 19, while cutting her price target to $106 from $139. The new target sits 72.67% above the $61.39 level where the stock opened Monday, and shares jumped more than 6% in premarket trading, with TipRanks putting the move at 7.46% to $65.95.

The call comes after a rough week. CoreWeave lost roughly 25% last week as AI infrastructure stocks sold off, MoffettNathanson cut its target to $89 from $107, and investors focused on debt-funded expansion. Its unsecured bonds have traded at yields to worst of 13.5% to 15%, and Borges expects the company's blended cost of debt to rise by 100 to 200 basis points while seeing limited room for further increases. Her case is that investors are underestimating upward revisions to returns, with annual recurring revenue per megawatt expected to rise over the next 24 months.

The fundamentals cut both ways. CoreWeave's last reported quarter showed revenue of $2.58 billion, up 112.5% from a year earlier, and a loss of $1.14 per share, narrower than the $1.52 consensus. But the company carries a debt-to-equity ratio of 5.53, and analysts project gross leverage of roughly 6.3 times by year-end. Across the Street, SentiSense data shows 30 Buy, 8 Hold and 3 Sell ratings with an average target of $140.58, well above Goldman's reduced figure.

What to watch: whether the stock holds its premarket gain as other AI infrastructure names stabilize, the next moves in CoreWeave's bond yields, and the company's next earnings report for evidence that contract economics can outrun rising funding costs.