This Nvidia-backed stock just got a Wall Street price target update for next 12 months

Even before the latest stock market upswing that has taken effect in the extended session leading to April 8, CoreWeave (NASDAQ: CRWV) stock has been outperforming most of the technology sector.

Indeed, CRWV shares are up 7.46% year-to-date (YTD) and 16.31% in the green in the last week of trading. The equity also soared 7.14% in the extended session from $85.24 at the latest close to $91.33 at press time.

Despite such performance, Bernstein’s Madison Rezaei reiterated a bearish outlook on Wednesday. Specifically, the Wall Street analyst confirmed that CoreWeave is still expected to ‘Underperform’ – effectively, that it is rated as ‘Sell’ – and that the equity will drop 38.68% to $56 in the coming 12 months.

Why Bernstein anticipated CoreWeave stock crash to $56

According to Rezaei, the Bitcoin (BTC) miner that turned into a cloud computing firm is unlikely to be a major beneficiary of the proliferation of artificial intelligence (AI) even if the bullish forecasts regarding the sector prove correct.

Furthermore, Bernstein described the odds of Nvidia (NASDAQ: NVDA) stepping in to boost CoreWeave – a scenario deemed relatively likely due to how cheap it would be for the blue-chip chipmaker – as a poor ‘insurance policy over the long term.’

Still, Madison Rezaei highlighted that the bearish outlook is centered on structural revenue, and not a lack of belief that CoreWeave will be able to increase the value of its contracts and the size of its margin.

Wall Street sets CoreWeave stock price target for next 12 months

Zooming out, Bernstein’s take on CoreWeave stock is in stark contrast to the prevalent Wall Street attitude. Indeed, CRWV shares are, on average, expected to rally approximately 34% to $114.20 over the next 12 months.

Similarly, the cloud computing equity is, overall, considered a ‘Moderate Buy,’ per the data Finbold retrieved from the stock analysis platform TipRanks on April 8.

Lastly, Bernstein’s rating of the company is put in an even starker contrast with the rest of the institutional analysts, considering it is CRWV shares’ singular sell rating assigned in the last three months, and came with the lowest price forecast.

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