Core Scientific (NASDAQ:CORZ) Upgraded to Outperform at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods upgraded Core Scientific to “Outperform” from “Market Perform” and set a $28 price target, implying 54.5% upside from the prior close. Analysts’ consensus rating is “Moderate Buy,” with an average target of $31.60.
• Core Scientific is shifting toward AI data-center colocation, highlighted by an AMD-supported agreement covering up to 2.5 gigawatts and roughly $14 billion in potential base revenue over 15 years.
• Second-quarter revenue of $164.2 million exceeded estimates, but the company reported a substantial $3.32-per-share loss and approximately $797.5 million in capital expenditures as it converts sites for high-density computing.

Core Scientific (NASDAQ:CORZ - Get Free Report) was upgraded by equities researchers at Keefe, Bruyette & Woods from a "market perform" rating to an "outperform" rating in a research note issued to investors on Thursday, MarketBeat reports. The brokerage presently has a $28.00 target price on the stock. Keefe, Bruyette & Woods' price target indicates a potential upside of 54.53% from the company's previous close.

Other equities analysts also recently issued research reports about the stock. Cantor Fitzgerald upped their price objective on shares of Core Scientific from $25.00 to $29.00 and gave the company an "overweight" rating in a report on Thursday, April 9th. Freedom Capital upgraded shares of Core Scientific to a "hold" rating in a research note on Monday, June 15th. Weiss Ratings reissued a "sell (d-)" rating on shares of Core Scientific in a research report on Friday, July 17th. Needham & Company LLC upped their price target on shares of Core Scientific from $29.00 to $35.00 and gave the company a "buy" rating in a research note on Wednesday. Finally, Wolfe Research reaffirmed a "buy" rating on shares of Core Scientific in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $31.60.

Core Scientific Price Performance

Core Scientific stock opened at $18.12 on Thursday. Core Scientific has a 1-year low of $12.60 and a 1-year high of $30.46. The business has a fifty day moving average price of $25.22 and a 200-day moving average price of $20.78. The stock has a market capitalization of $5.76 billion, a price-to-earnings ratio of -4.10 and a beta of 5.50.

Core Scientific (NASDAQ:CORZ - Get Free Report) last announced its earnings results on Tuesday, July 28th. The company reported ($3.32) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($3.26). The company had revenue of $164.20 million during the quarter, compared to the consensus estimate of $144.83 million. On average, equities research analysts anticipate that Core Scientific will post 0.08 earnings per share for the current fiscal year.

Insider Transactions at Core Scientific

In other news, insider Todd M. Duchene sold 10,000 shares of the company's stock in a transaction on Monday, July 27th. The shares were sold at an average price of $20.95, for a total value of $209,500.00. Following the sale, the insider directly owned 1,989,101 shares of the company's stock, valued at $41,671,665.95. This represents a 0.50% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Over the last ninety days, insiders have sold 90,000 shares of company stock worth $2,234,900. Company insiders own 1.70% of the company's stock.

Institutional Trading of Core Scientific

A number of hedge funds have recently modified their holdings of CORZ. Allworth Financial LP lifted its holdings in Core Scientific by 206.5% in the third quarter. Allworth Financial LP now owns 1,410 shares of the company's stock valued at $25,000 after acquiring an additional 950 shares during the period. Larson Financial Group LLC increased its holdings in shares of Core Scientific by 936.7% during the 4th quarter. Larson Financial Group LLC now owns 1,866 shares of the company's stock valued at $27,000 after purchasing an additional 1,686 shares in the last quarter. Osaic Holdings Inc. lifted its stake in shares of Core Scientific by 112.1% in the 2nd quarter. Osaic Holdings Inc. now owns 2,017 shares of the company's stock valued at $34,000 after purchasing an additional 1,066 shares during the period. Danske Bank A S acquired a new position in shares of Core Scientific in the 4th quarter valued at $36,000. Finally, CoreCap Advisors LLC purchased a new stake in Core Scientific during the second quarter worth $36,000.

Core Scientific News Roundup

Here are the key news stories impacting Core Scientific this week:

• Positive Sentiment: AMD deal accelerates Core Scientific’s shift from bitcoin mining to AI data centers. AMD agreed to support up to 2.5 gigawatts of capacity, including roughly 529–530 megawatts covered by long-term agreements across five sites. The initial contracts span 15 years and represent approximately $14 billion in potential base revenue, subject to successful development and deployment. AMD also received warrants to buy up to 30 million CORZ shares at $23.47. AMD and Core Scientific infrastructure partnership
• Positive Sentiment: Analysts remain broadly optimistic. Needham and BTIG reaffirmed Buy ratings, with price targets of $29 and $38, respectively. Canaccord also raised its target to $36. These targets reflect expectations that contracted AI colocation revenue will support significant long-term growth. Needham Buy rating article BTIG Buy rating article
• Positive Sentiment: Colocation momentum is improving the business mix. Second-quarter revenue reached $164.2 million, above the $144.8 million consensus estimate, while colocation revenue increased sharply year over year. This supports the view that CORZ is becoming less dependent on volatile cryptocurrency economics.
• Neutral Sentiment: Mark Adams joined the board. The technology executive brings experience in AI infrastructure, semiconductors and storage, potentially strengthening Core Scientific’s ability to execute its data-center strategy. Core Scientific board appointment
• Negative Sentiment: The quarter included a severe GAAP loss and major capital requirements. Core Scientific reported a $3.32-per-share loss versus expectations for a $0.06 loss, although the deficit was largely tied to noncash warrant fair-value adjustments. Capital expenditures were approximately $797.5 million as sites are converted for high-density computing.
• Negative Sentiment: Downgrade and dilution concerns are weighing on sentiment. Keefe, Bruyette & Woods lowered CORZ to Market Perform. AMD’s warrants could dilute shareholders if exercised, while insider Todd Duchene sold 10,000 shares in a recent transaction, reducing his stake by about 0.5%. KBW downgrade article

About Core Scientific

Core Scientific, Inc NASDAQ: CORZ is a leading provider of large-scale blockchain infrastructure and digital asset mining services. The company develops, owns and operates high-performance data centers optimized for the mining of Bitcoin and other proof-of-work cryptocurrencies. In addition to its core mining operations, Core Scientific offers colocation, hosting and managed services designed to support institutional clients and enterprise users in deploying and scaling blockchain nodes and computing hardware.

Core Scientific's service portfolio includes hardware procurement, deployment and maintenance, real-time monitoring, power management and network connectivity.

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