Core Scientific Experiences Valuation Challenges; Price Target Increased to $22, Says Jefferies
Jefferies has revised its price target for Core Scientific, raising it from $16 to $22 while reaffirming its buy rating amidst ongoing valuation issues related to the CoreWeave acquisition.
Summary
Jefferies issued an alert regarding the potential impacts of CoreWeave’s stock performance on Core Scientific. The firm has adjusted its price target for Core Scientific to $22 from $16 due to the ongoing situation with its acquisition of AI cloud provider CoreWeave.
Key Points:
- Jefferies cautioned that if CoreWeave’s stock does not improve, shareholders may consider rejecting the merger.
- There is an expectation for renegotiation if CoreWeave fails to recover its share price.
- The proposed merger is anticipated to be voted on in the fourth quarter.
Additional Context
Core Scientific reported disappointing earnings, but their adjusted EBITDA was better than market forecasts. The current situation with the merger is critical, as fluctuating prices of CoreWeave’s stock influence Core Scientific’s valuation.
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Disclaimer: This piece includes content generated with AI tools, ensuring accuracy through oversight.
