Macquarie Starts Coverage on Core Scientific with Outperform Rating

A recent report reveals that Macquarie has initiated coverage of Core Scientific, Inc. - Equity Right, projecting a price increase of over 27% from its current pricing. Despite negative EPS projections, the revenue outlook indicates growth potential.

Date: 26-09-2024

AI Rating: 6

The initiation of coverage by Macquarie with an Outperform rating for Core Scientific, Inc. suggests a positive outlook. The average one-year price target of $0.41/share indicates a 27.63% potential upside from its current closing price of $0.32/share, which may greatly influence market sentiment positively.

However, the projected annual revenue for Core Scientific is set at $614MM. This figure reflects expectations of stable revenue growth, which can attract investor interest and possibly drive the stock price higher. Still, caution should be exercised due to the anticipated non-GAAP EPS of -0.01, indicating a loss and thereby reflecting some weaknesses in profitability.

Additionally, there are currently only 2 funds or institutions reporting positions in Core Scientific, which could signal limited institutional interest. This stagnant institutional presence, coupled with a significant decrease in total shares held by institutions (down by 70.87% over the last three months), raises concerns about the stock’s stability and long-term viability.

On a more positive note, the reported average portfolio weight of funds dedicated to Core Scientific saw a substantial increase of 87.76%. This indicates a growing confidence in the stock among a small number of institutional investors, which could be a bullish signal if more institutional investors commence buying.

In summary, while the projected upside and revenue growth present a compelling case for potential investors, the negative EPS and reduced institutional interests might overshadow these positive aspects, creating an overall cautious atmosphere regarding the stock's future performance.

Stocks: CORZR