Oppenheimer Defends $150 CoreWeave Target, Calls Bond Selloff Overdone

Oppenheimer is maintaining its Outperform rating and $150 price target on CoreWeave (NASDAQ: CRWV), arguing that a recent selloff in the company’s bonds has created an unfounded perception of risk that overlooks the firm's strong underlying asset value. The analyst note comes after the AI infrastructure provider's stock has fallen 37% over the past month, closing the previous session at $56.43.

Bond Market Jitters Seen as Unwarranted

According to Oppenheimer analyst Param Singh, a selloff in CoreWeave's unsecured bonds, driven by fears of rising interest rates and GPU obsolescence, is putting "unnecessary pressure on the equity valuation." The firm's analysis suggests the credit market's concerns are exaggerated when compared to the company's financial fundamentals and asset base.

Oppenheimer conducted a detailed stress test of the company's balance sheet to support its view. The firm believes the market is misjudging the durability of CoreWeave's assets and its position as a going concern.

Balance Sheet Strength and Asset Value

A liquidation analysis by the firm forms the core of its argument. Oppenheimer's calculations estimate:

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• Recoverable assets: Approximately $83 billion
• Pro forma debt: Roughly $42 billion
• Other liabilities: Approximately $37 billion

Based on this, Singh concluded, "we see a full recovery for unsecured debt," even in a worst-case scenario. Oppenheimer also noted that standard accounting depreciation understates the true value of CoreWeave's servers. The firm cited a contract for A100 GPUs running through 2029 as evidence of a nine-year useful server life, materially longer than the six-year depreciation assumption.

Cash Flow Potential and Near-Term Outlook

To further illustrate financial resilience, Oppenheimer modeled hypothetical scenarios where CoreWeave pauses capital expenditures. These stress tests showed the company could generate between ~$9 billion and ~$16 billion in annual free cash flow. The firm was careful to note these are hypothetical exercises, not a forecast, designed to underscore the business's underlying strength.

Looking ahead, Oppenheimer expects CoreWeave to report a third-quarter 2026 earnings beat and raise its full-year revenue outlook to 160% year-over-year growth. The firm also sees CoreWeave's differentiated software stack as a key long-term advantage over more commoditized GPU cloud providers.