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Goldman Sachs raises CoreWeave to buy but cuts price target

CoreWeave shares rose more than 6 percent in premarket trading after Goldman Sachs upgraded the stock to buy from neutral, while cutting its price target to $106 from $139. Goldman said the market is overpricing the risk of higher borrowing costs and undervaluing returns from computing assets. It expects annual recurring revenue per megawatt to rise and sees only limited increases in borrowing costs. Other analysts also highlighted growth prospects and key contracts.