CoreWeave Bonds Yield 15% as BofA Sticks to $140 Target
CRWV sits 15% above its 52-week low of $59.51 on elevated volume (4.2× avg).
Summary
CoreWeave's 2032 and 2031 bonds are yielding above 15% and trading near 78 cents on the dollar, a level the market treats as financial strain, while the stock fell about 16% Wednesday and another 3% Thursday, down a third in seven sessions and 65% below its May 2025 peak. Bank of America's Tal Liani reiterated Buy and a $140 target, roughly 105% above current levels, and raised 2027 revenue growth to 105% and 2028 to 63%, citing capacity growth to 4.8 gigawatts by 2028 and revenue per watt rising from about $10 to $14 as Nvidia's Vera Rubin chips roll out. The tension is financing: BofA's own model shows roughly $67B of negative free cash flow from 2026-2028, about $59B of new borrowing, and interest expense nearly doubling from $3.08B in 2026 to $5.9B in 2028, with operating profit not fully covering interest until 2028. The $129B backlog, with Meta at 27.1% and OpenAI at 17.4%, is the bull case, but the bond market is pricing what happens if refinancing gets more expensive first. Nvidia remains the key supplier and demand driver behind the capacity and pricing assumptions.
At the time of this announcement, CRWV was trading at $68.70 on NASDAQ in the Technology sector, with a market capitalization of approximately $38.4B. The 52-week trading range was $59.51 to $150.40. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.