Goldman Sachs Upgrades CoreWeave to Buy, Cuts Price Target to $106

Shares of US AI cloud computing firm CoreWeave rose approximately 2% on Monday to trade at $62.90, snapping a steep weekly decline. The rebound was driven by positive analyst ratings from major Wall Street firms, although investors remain wary of the company's debt-funded expansion model.

Goldman Sachs upgraded CoreWeave to Buy from Neutral. Analyst Gabriela Borges argued that investor concerns about the company's risks may have become overstated and noted that developments expected over the next 12 months could provide positive signals. However, she lowered her price target to $106 from $139 following last week's sell-off.

Other institutions maintained bullish stances. Cantor Fitzgerald reiterated its Overweight rating with a $176 price target, citing strong demand and scarce computing capacity. Evercore ISI and Deutsche Bank also maintained Outperform and Buy ratings respectively, both with $150 targets.

Debt remains a significant headwind. Bonds issued by CoreWeave traded at 79.5 cents on the dollar last week, yielding more than 15%. With approximately $72.9 billion in total debt, the company's ability to finance continued growth amid rising borrowing costs remains a key concern for the market.