Core Scientific Gets Neutral Rating from Rothschild Redburn Amid Overvaluation Concerns

Rothschild Redburn has initiated coverage on Core Scientific Inc., giving it a Neutral rating and setting a price target of $16.00.

The stock currently trades at $17.99, above the target.

Core Scientific is one of the largest mining operators in North America, founded in 2017.

The company grew rapidly but struggled due to rising energy costs and the 2022 crypto downturn.

It emerged from Chapter 11 bankruptcy in early 2024 with a restructured balance sheet.

Core Scientific has since pivoted its data center capacity towards high-performance computing and AI hosting, signing large colocation agreements with customers like AMD.

The company's revenue surpassed expectations in the second quarter, but its adjusted EBITDA fell short.