HSBC maintains Reduce on CoreWeave with $39 target, sees EPS 50-70% below consensus
SumitGup · x · 2026-10-20
HSBC's October 19 note reiterates Reduce on CoreWeave (CRWV) with a $39 target vs $61.39 share price (-36.5%). Key points: neoclouds earn $12m/MW annually vs $17-18m for hyperscalers; recent contracts are short 3-6 month deals (CoreWeave $40m/MW pa, SpaceX-Anthropic/Google deals $22-50m/MW pa); moderating LLM growth and rising debt yields could stall speculative capacity builds; HSBC's 2028-30 non-GAAP EPS estimates sit 50-70% below consensus, with long-term operating margin of 15-16% vs management's 25% guidance.
Related event: HSBC Keeps Reduce Rating on CoreWeave, Sees Over 30% Downside(2 posts)→
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