CoreWeave is facing significant pressure after HSBC lowered its price target from $44 to $41 and maintained a Reduce rating, coinciding with the filing of a class action securities fraud lawsuit.
- The lawsuit alleges the company overstated infrastructure capabilities and concealed data center delays.
- HSBC cited rising debt costs, a high debt-to-equity ratio of 4.85, and a projected $9.8 billion liquidity shortfall by 2026 as reasons for the downgrade.
- The stock is currently trading lower at $104.88, representing a decline of 3.66%.