Oppenheimer initiated coverage on CoreWeave (CRWV) with an Outperform rating. The firm established a price target of $140 for the AI-focused cloud provider.
The analysis highlights a substantial $66.8 billion backlog as a primary driver for future free cash flow margins. Analysts noted that heavy capital expenditures for data center expansion are necessary to support the company's hyper-growth trajectory.
CoreWeave shares rose 1.5% during Friday morning trading following the announcement. The firm's outlook prioritizes long-term scaling over current debt levels and investment requirements.