Jones Trading initiated coverage of Core Scientific (NASDAQ:CORZ) with a Buy rating. The firm set a price target of $25.00.
Jones Trading's positive outlook stems from Core Scientific's successful transformation. The company shifted from Bitcoin mining to providing infrastructure for artificial intelligence and high-performance computing (HPC).
Analysts at Jones Trading highlighted Core Scientific's major deals with companies like CoreWeave. These deals demonstrate a strategic shift toward more predictable and stable cash flows.
Despite the bullish initiation, Core Scientific's stock traded lower on Monday. Other data center operators also saw declines. This occurred due to broader market concerns over rising interest rates and inflation.