Rosenblatt Revamps CoreWeave Stock Price Target For Rest of Year Moz Farooque ACCA Tue, November 10, 2026 at 12:09 PM EST 2 min read CRWV -2.44% NVDA -6.59% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
CoreWeave (NASDAQ:CRWV) faces mounting Wall Street skepticism ahead of its November 10 earnings report after Rosenblatt Securities slashed its stock price target by 36%, citing rising financing costs. Despite lowering its target from $250 to $160, analyst John McPeake maintained a Buy rating, suggesting the AI infrastructure provider's growth potential remains attractive even as its debt burden threatens profitability.
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CoreWeave operates specialized cloud data centers powered by Nvidia graphics processing units. It generates revenue by renting AI computing capacity to technology companies, developers and enterprises training and deploying artificial intelligence models.
McPeake's concern centers on CoreWeave's increasingly expensive expansion strategy.
Although returns on AI infrastructure investments have improved, higher interest rates and substantial financing requirements are weighing on earnings projections.
The analyst raised his assumptions for borrowing costs on CoreWeave's delayed-draw term loan and increased the discount rate used to value future cash flows.
That matters because even robust revenue growth may fail to translate into stronger shareholder returns if debt servicing absorbs a growing share of operating profits.
The warning comes as CoreWeave shares have declined approximately 35% year to date.
Wall Street expects third-quarter revenue to surge 160% to $3.54 billion, but losses are projected to widen dramatically to $1.27 per share from $0.08 a year earlier.
Other analysts share similar concerns. Citi lowered its target from $159 to $128 while maintaining a Buy rating, reflecting weaker valuation multiples.
However, McPeake remains optimistic about enterprise AI demand and CoreWeave's ability to meet its near-term power capacity targets.
CoreWeave's third-quarter results, scheduled after Tuesday's closing bell, represent a critical test.
Investors should monitor revenue growth, interest expenses, debt levels, capital expenditures and management's financing plans.
The company's approximately $51.6 billion debt burden makes borrowing costs particularly important.
Another consideration is whether CoreWeave can pass higher financing expenses to customers through increased computing prices.
Strong demand, improving margins and a credible path toward positive cash flow could support Rosenblatt's bullish outlook.
However, further debt accumulation or weaker profitability could undermine the investment case despite exceptional sales growth.
