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 DonCorleone77 [@CorleoneDon77](/creator/twitter/CorleoneDon77) on x 5393 followers
Created: 2025-07-17 11:38:27 UTC
$CRWV
Attached is page X of a 5-page Wells Fargo analyst report on CRWV issued yesterday entitled:
"Acquiring Core Scientific—Moving Down the Stack"
Wells Fargo has a 'Equal Weight' rating on CRWV with a $XX price target.
Wells Fargo's 'Call' regarding CRWV in the report includes the following:
"View CRWV's deal for CORZ as strategically bolstering its DC capacity & see equity financing as sensible given the recent run-up in shares. However, still see LT concerns around unit economics & concentration, w/ NT risks around lockup expiry ahead.
Initial Thoughts:
Acquisition Rationale: CRWV announced its acq of Core Scientific for ~$9B EV, a vertical integration play to expand CRWV's direct ownership and control of data centers while also improving the underlying economics. The acq would bring 2.3GW+ future capacity (1.5GW net new to CRWV), $500M+ of annualized cost savings by 2027 (streamlining cost structure, reduce lease burden), and improved financing optionality ("several hundred" bps cost of capital improvement, infrastructure financing).
1.5GW+ New CoreWeave Capacity: Most important, the deal would bring 1.5GW new power capacity, incl 500MW of capacity from X crypto-mining sites (which CRWV plans to re-purpose or divest med-term) and 1GW+ of expansion opp (700MW from existing CRWV sites, 450MW from mining/other sites). In total, CORZ brings 2.3GW+ gross power w/ 840MW related to X existing CRWV sites (Denton, TX, Dalton, GA, Muskogee OK, Marble, NC, Austin, TX). Bringing these in-house eliminates $10B+ of future lease overhead.
-- Target Price Valuation: $XXXXX from NC
Our $XX PT is derived from 12.5x EV/EBIT on CY26e (implies 3.5x EV/S), below hyperscale peers but fair in our view given its high capital intensity, significant debt load/interest burden, and risks around customer concentration.
-- Risks to Our Price Target and Rating:
- Upside risks to our price target include:
1) greater-than-expected demand for GPUs could come to market,
2) the useful life of GPUs could extend beyond the X years, extending CRWV's monetization potential,
3) borrowing rates could decline, lowering interest burden.
- Downside risks to our PT include:
1) customer concentration risk around a few large logos, 2) elevated capital intensity, which could inhibit cash generation in the NT,
3) LT demand profile of AI unknown, with increasing competition"
(Page X is not available here as X does not allow me to post pages from reports on this platform)
XXX engagements
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[Post Link](https://x.com/CorleoneDon77/status/1945810326902980969)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
DonCorleone77 @CorleoneDon77 on x 5393 followers
Created: 2025-07-17 11:38:27 UTC
$CRWV
Attached is page X of a 5-page Wells Fargo analyst report on CRWV issued yesterday entitled:
"Acquiring Core Scientific—Moving Down the Stack"
Wells Fargo has a 'Equal Weight' rating on CRWV with a $XX price target.
Wells Fargo's 'Call' regarding CRWV in the report includes the following:
"View CRWV's deal for CORZ as strategically bolstering its DC capacity & see equity financing as sensible given the recent run-up in shares. However, still see LT concerns around unit economics & concentration, w/ NT risks around lockup expiry ahead.
Initial Thoughts:
Acquisition Rationale: CRWV announced its acq of Core Scientific for ~$9B EV, a vertical integration play to expand CRWV's direct ownership and control of data centers while also improving the underlying economics. The acq would bring 2.3GW+ future capacity (1.5GW net new to CRWV), $500M+ of annualized cost savings by 2027 (streamlining cost structure, reduce lease burden), and improved financing optionality ("several hundred" bps cost of capital improvement, infrastructure financing).
1.5GW+ New CoreWeave Capacity: Most important, the deal would bring 1.5GW new power capacity, incl 500MW of capacity from X crypto-mining sites (which CRWV plans to re-purpose or divest med-term) and 1GW+ of expansion opp (700MW from existing CRWV sites, 450MW from mining/other sites). In total, CORZ brings 2.3GW+ gross power w/ 840MW related to X existing CRWV sites (Denton, TX, Dalton, GA, Muskogee OK, Marble, NC, Austin, TX). Bringing these in-house eliminates $10B+ of future lease overhead.
-- Target Price Valuation: $XXXXX from NC
Our $XX PT is derived from 12.5x EV/EBIT on CY26e (implies 3.5x EV/S), below hyperscale peers but fair in our view given its high capital intensity, significant debt load/interest burden, and risks around customer concentration.
-- Risks to Our Price Target and Rating:
- Upside risks to our price target include:
- greater-than-expected demand for GPUs could come to market,
- the useful life of GPUs could extend beyond the X years, extending CRWV's monetization potential,
- borrowing rates could decline, lowering interest burden.
- Downside risks to our PT include:
- customer concentration risk around a few large logos, 2) elevated capital intensity, which could inhibit cash generation in the NT,
- LT demand profile of AI unknown, with increasing competition"
(Page X is not available here as X does not allow me to post pages from reports on this platform)
XXX engagements
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