DA Davidson Upgrades CoreWeave on Rising Confidence in 2026 De-Risking Events

Core View - DA Davidson upgraded CoreWeave from Neutral to Buy and raised its price target to $110 from $68 due to strengthening demand for compute and a more favorable risk-reward profile heading into 2026 [1] Investor Concerns - Investor concerns regarding CoreWeave's exposure to a narrow set of outcomes tied to future AI compute demand are well understood, with neocloud providers heavily reliant on sustained growth in AI workloads [2] - Historically, CoreWeave lacked a clear catalyst to materially reduce perceived counterparty risk and capital structure overhang [2] Outlook Changes - Analysts believe the probability of meaningful de-risking events has increased materially in 2026, which could reduce both counterparty exposure and balance-sheet concerns, leading to a more constructive view on valuation [3] Risk and Potential - Downside risks are largely reflected in the current share price, while upside potential has improved due to strengthening compute demand and a clearer path toward risk reduction, prompting a more positive stance on the stock [4]