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Bank of America Downgrades CoreWeave on Valuation Concerns Amid AI Infrastructure Boom

Bank of America Downgrades CoreWeave on Valuation Concerns Amid AI Infrastructure Boom

Published:
2025-06-16 15:04:02
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Bank of America analyst Bradley Sills downgraded CoreWeave (CRWV) to Hold from Buy, citing a 145% rally since Q1 earnings and a premium 2027 EV/EBIT valuation of 25x. The cloud AI infrastructure provider continues gaining traction, including powering Google''s recent deal with OpenAI.

Despite the downgrade, Sills raised the price target to $185 from $76, highlighting new hyperscaler contracts, expanded OpenAI partnerships, and improved debt terms. The MOVE reflects balancing near-term valuation risks against long-term AI infrastructure demand.

|Square

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