CoreWeave is sliding in spite of its strong fundamentals, and investors should take advantage of the discount on shares, according to Deutsche Bank. The investment bank has a buy on the cloud infrastructure stock. It also has a $150 price target on shares, implying 128% upside from Wednesday’s close. “A confluence of factors appear to have led to a sharp selloff in CoreWeave’s public equity and debt over the past week,” analyst Brad Zelnick said Wednesday in a note to clients. “There’s no doubt CoreWeave’s future is tied to the success of AI and demand for the underlying compute infrastructure supporting it, and thus its shares should reflect changes in sentiment here. Beyond that, we struggle to find company specific factors that justify the recent move.” Shares of CoreWeave plunged more than 15% on Wednesday as investors fret over the company’s outsized borrowing. In September, the companysaid it would raise $3 billion through a convertible debt offering . CRWV 5D mountain CRWV 5-day chart Zelnick added that the fundamental market backdrop for artificial intelligence infrastructure remains “quite supportive,” despite some declines in large language model token prices. The analyst also noted that the Nvidia-backed company could trade higher, even in a difficult market, due to its “close customer and technical relationships with industry leaders like NVIDIA, Dell, Meta, [OpenAI] and others.” Those connections should “provide support and different financing options as market conditions evolve,” he said. Deutsche Bank’s call falls in line with consensus on the Street. Of the 45 analysts covering CoreWeave, 32 have a buy or strong buy on the stock, LSEG data shows. To be sure, the stock traded more than 5% lower in premarket trading Thursday.
