Investment Bank Macquarie upgraded Core Scientific (CORZ) to outperform from neutral and raised its price target on the stock nearly 90% to $34 from $18 following the collapse of the Coreweave (CRWV) deal.
The failed merger between Core Scientific and Coreweave comes as no surprise after reports and proxy recommendations pointed to shareholder opposition, analysts Paul Golding and Marni Lysaght wrote in a report Thursday.
The bank’s analysts viewed the outcome as a positive one, providing basic scientific evidence to lease near-term power capacity to AI tenants.
Basic Science shares were 4.5% higher in early trading, around $21.70.
Analysts noted that Bitcoin Miner’s portfolio of 1.5 Gigawatt (GW) includes 590 megawatts (MW) leased to Coreweave and another 1 GW gross, approximately 700 MW billable, under load analysis.
Management expects to sign at least one new colocation customer through fourth-quarter earnings, a move Macquarie said could accelerate revenue diversification and highlight the company’s advantage in high-performance computing buildout.
Jefferies said Core Scientific is moving forward with an updated focus after shareholders voted down its proposed merger with Coreweave.
The bank noted that the basic scientific release of the process with 1.5 GW of existing and planned billable power capacity and small capital expenditure is tied to the deal now.
Throughout the merger talks, the miner continued to expand its data center business and is now positioned to sign new tenants and power contracts by the end of the year, analysts led by Jonathan Petersen wrote in a Thursday report.
Signing a new tenant would be a major milestone for diversifying revenue and reducing reliance on Coreweave, the report said.
Jefferies has a buy rating on the basic science shares with a $28 price target.
Read more: Major scientific holders are holding out to reject the Mereweave Merger, Jefferies said
