Citi analyst Tyler Radke cut the firm's price target on CoreWeave to $128 from $159 and maintained a Buy rating. The new target implies 164% upside from the stock's November 4 closing price of $48.42.
CoreWeave shares have fallen 65% from their May high. They closed down 9.9% on Wednesday.
The target cut comes amid headwinds for the AI infrastructure company, including rising interest costs on its significant debt and Microsoft's lower-than-expected capital spending. Investors also fear data-center construction restrictions following Democratic victories in the midterm elections.
Concerns about CoreWeave's high debt load have mounted. Its 2031 bonds recently fell to new lows.