Jefferies analyst Brent Thill has initiated coverage on CoreWeave (CRWV, Financial), assigning a Buy rating and setting a price target of $51. The firm points to the company's capability in scaling and reliably hosting artificial intelligence (AI) compute as a significant advantage in an industry that is still in its early stages of development.
According to Jefferies, CoreWeave is well-positioned to benefit from the growing demand for AI solutions. The analyst believes that this increasing demand mitigates concerns about the long-term sustainability of the company's business model. Despite potential risks, Jefferies remains optimistic due to the strong and ongoing appetite for AI computing resources.
