Wall Street got a head-scratcher from Bank of America analyst Brad Sills, who pulled a classic plot twist on CoreWeave (CRWV). On Monday, he downgraded the AI cloud darling from Buy to Neutral, citing a jaw-dropping 145% stock surge since its Q1 earnings that left it trading at a lofty 25x 2027 EV/EBIT – way pricier than its peers at 16x.
But here’s the kicker: Sills simultaneously jacked up his price target from $76 to a Street-high $185, implying a 26% upside from the day’s $147 price. Talk about mixed signals! It’s like telling your date you’re “just friends” while booking a romantic getaway.
Wall Street’s reaction? CRWV stock jumped over 8%, pushing its post-IPO rally to a staggering 340%. Should you jump in?
This post originally appeared at Money Morning.