Investment bank HC Wainwright upgrades Bitcoin BTC$114,515.90 Miner Core Scientific (CORZ) is a buy with a new target price of $25, citing accelerating demand for AI-enabled data center infrastructure.
Shares were trading around $20.10, up 1.2% in early trading.
Core Scientific's experience in developing large-scale facilities for both cryptocurrencies and artificial intelligence gives it a significant advantage in the high-performance computing (HPC) market, the bank said in a report on Tuesday.
Estimating 2026 sales of $424 million, this target would imply a market-to-sales multiple of almost 19x, which Wainwright deemed justified by high growth potential through 2027.
The bank pointed to typical crypto-related risks such as hash rate volatility, digital asset prices, and regulatory risks. The company said Core's scale and increased HPC revenue will help offset these concerns.
The upgrade comes after proxy advisory firms ISS and Glass Lewis recommended that shareholders vote against Coreweave's proposed takeover ahead of the company's Oct. 30 shareholder meeting. Head coach Wainwright said he believes this effectively ends the contract.
The bank's analysts see this as a positive, allowing Core to focus on expanding its HPC infrastructure.
Analysts said that with its $10.2 billion, 12-year CoreWeave hosting contract and proven execution speed, Core Scientific is perfectly positioned to take advantage of one of the most important technology builds of the AI era.
read more: Bitcoin Miner Core Scientific Upgrades for Purchase as HPC Momentum Gains: B. Riley
