CORZ Has Major Upside Following Failed CRWV Takeover

Investment bank Macquarie has upgraded Core Scientific (CORZ) to an outperform rating from neutral, raising its price target on the stock by nearly 90% to $34 from $18. This move follows the collapse of the proposed merger deal between Core Scientific and CoreWeave (CRWV).

The failed merger came as no surprise, according to analysts Paul Golding and Marni Lysaght, who noted in their Thursday report that shareholder opposition was evident from reports and proxy recommendations. Despite the setback, Macquarie’s analysts view the outcome positively, as it gives Core Scientific greater flexibility to lease its near-term power capacity to AI tenants.

Core Scientific shares responded positively, rising 4.5% in early trading to around $21.70.

The analysts highlighted that Core Scientific’s 1.5 gigawatt (GW) power portfolio includes 590 megawatts (MW) already leased to CoreWeave, with an additional 1 GW gross—and roughly 700 MW billable—currently under load study. Management expects to sign at least one new colocation customer by the fourth-quarter earnings report. Macquarie noted that securing a new tenant could accelerate revenue diversification and underscore Core Scientific’s competitive advantage in high-performance computing buildouts.

Meanwhile, Jefferies commented that Core Scientific is moving forward with renewed focus after shareholders rejected the proposed merger with CoreWeave. According to analysts led by Jonathan Petersen, Core Scientific exits the merger process retaining 1.5 GW of existing and planned billable power capacity, with minimal capital expenditure tied to the now-defunct deal.

Throughout the merger talks, Core Scientific continued to expand its data center business, positioning itself to sign new tenants and power contracts by the end of the year. Jefferies emphasized that signing a new tenant would be a key milestone in diversifying revenue streams and reducing reliance on CoreWeave.

Jefferies currently holds a buy rating on Core Scientific shares, with a price target of $28.
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