TradingKey – On October 19 ET, after Goldman Sachs upgraded CoreWeave (CRWV) from “Neutral” to “Buy,” its stock price bounced back by nearly 3%. At the same time, however, the bank lowered its price target from $139 to $106. Its core rationale is that the market may have overestimated financing pressures while underestimating the potential for improvement in returns on computing power investments.

Goldman Sachs pointed out that while CoreWeave’s unsecured bond yields have risen to 13.5%–15%, the company primarily relies on asset-backed loans for expansion, meaning bond yields cannot be used directly to measure all new financing costs. The bank estimates that composite debt costs could rise by 1 to 2 percentage points from current…