Morningstar initiated coverage on CoreWeave with a 'no-moat' rating. The firm set a fair value estimate of $97 per share. CoreWeave provides 'neocloud' services for artificial intelligence training and inference. The company maintains substantial bookings from Microsoft, OpenAI, and Meta.
Morningstar forecasts a 63% five-year compound annual revenue growth rate. Heavy capacity expansion costs may limit returns on invested capital relative to the cost of capital. High leverage remains a significant risk. Morningstar assigned the company a 'Very High' uncertainty rating.