Report: Core Scientific faces valuation differences and raises target price to $22
According to online reports, investment bank Jefferies released a research report stating that the proposed merger of bitcoin miner Core Scientific (CORZ) and artificial intelligence cloud service provider CoreWeave is facing valuation differences. The bank raised its share price target for Core Scientific to $22 from $16 to reflect the value of the acquisition and maintained its "Buy" rating. According to the report, based on CoreWeave's current share price of US$99.97, the all-stock trading corresponds to a valuation of approximately US$12.35, which is significantly lower than Jefferies 'estimated fair value range of US$16 to US$23. Analysts suggest that if CoreWeave's share price fails to recover before the vote, trading terms may need to be renegotiated to increase the swap ratio to a range of 0.16 to 0.20, or add protections to deal with stock price fluctuations.
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