D.A. Davidson initiated coverage of CoreWeave, Inc. (CRWV) with a Neutral rating. Analyst Gil Luria set a price target of $100, a sharp reduction from the previous analyst view of $175.
The report highlighted CoreWeave's strong position in the AI compute market but warned of significant financial risks. Luria cited the company's high dependency on debt financing to fund its growth. The analyst also expressed concern regarding the firm's overall margin profile.
Recent filings revealed over $3 billion in insider share sales during the last three months. No corresponding insider purchases occurred during that period. D.A. Davidson remains skeptical of the company's ability to generate sufficient shareholder returns given these pressures. CoreWeave shares traded lower following the announcement.