Deutsche Bank lifts CoreWeave price target to $135 on strong Q1 results
The investment bank maintains a Buy rating as CoreWeave reports $2.08 billion in quarterly revenue, though heavy capital expenditure continues to weigh on near-term profitability.
Deutsche Bank has raised its price target for CoreWeave (NASDAQ:CRWV) to $135 from $125, maintaining a Buy rating following the cloud infrastructure provider’s first-quarter 2026 earnings report. The revision, announced on May 8, reflects an estimated upside of 18 per cent from the stock’s trading level at the time of the update.
The upgrade comes after CoreWeave reported revenue of $2.08 billion for the quarter, comfortably exceeding the Wall Street consensus estimate of $1.97 billion. The company also reported an earnings per share of -$1.12, which performed better than the anticipated loss of -$0.90.
Looking ahead, CoreWeave has provided forward guidance indicating continued growth. The firm expects second-quarter revenue to fall between $2.45 billion and $2.6 billion, with operating income rising to a range of $30 million to $90 million. Management anticipates returning to low double-digit growth rates by the fourth quarter.
Despite the revenue beat, profitability remains under pressure due to significant capital expenditure. Technology and infrastructure costs surged 127 per cent to $1.27 billion during the quarter, driven by heavy spending on AI data centres. This investment intensity highlights the capital-intensive nature of the GPU-as-a-Service model that CoreWeave employs to support large-scale artificial intelligence systems.
CoreWeave, founded in 2017 and headquartered in Livingston, New Jersey, offers the CoreWeave Cloud platform, providing GPU and CPU computing, data storage, networking, and AI development tools. While the bank acknowledges the company’s potential within the broader AI infrastructure market, it notes that the heavy spending required to maintain competitive advantage keeps short-term financials under strain.
