UBS initiated coverage on cloud computing firm CoreWeave (CRWV) with a Buy rating. The bank established a price target of $120 per share. Sustained demand for artificial intelligence computing power drives the positive outlook.
UBS analyst Karl Keirstead noted that investor sentiment remains cautious due to leverage and credit risk. The bank believes these financial concerns are currently peaking. UBS argues the market underappreciates the durability of AI compute demand.
The initiation represents a non-consensus positive call. UBS anticipates that investors will soon rotate back into AI-focused stocks.