Evercore ISI Reiterates Outperform on CoreWeave (CRWV) with $175 Price Target

Core View - CoreWeave, Inc. (NASDAQ: CRWV) is recognized as a trending AI stock, with a strong profitability model supported by durable contracts, Nvidia's backing, and long-term GPU demand [1][2] Financial Performance - Evercore ISI analyst Amit Daryanani has reiterated an Outperform rating on CRWV with a price target of $175.00, indicating bullish sentiment towards the stock [1] - The company’s profitability model is considered durable and risk-managed, even when accounting for high levels of depreciation expenses [2] Business Model - CRWV operates on multi-year take-or-pay/noncancelable contracts, with an average duration of 4 years, trending towards 5 years for recent deals [2] - The company builds capacity based on signed customer contracts rather than speculative development, typically receiving prepayments of approximately 15-25% of total contract value to fund initial capital expenditures [2] - 98% of CRWV's revenue is derived from reserved capacity, indicating a stable revenue stream [2] - Nvidia's Master Service Agreement (MSA) provides a margin of safety, ensuring that Nvidia will purchase any unutilized capacity through April 2032 [2]