Keefe Bruyette Downgrades Core Scientific, Boosts Targets for AI-Focused Miners

Keefe Bruyette, a Wall Street firm, recently revised its outlook on several Bitcoin mining companies ahead of their second-quarter earnings. The company downgraded Core Scientific (CORZ) to 'Market Perform' from 'Outperform', citing elevated execution risk and moderate confidence in the company's ability to secure new lease agreements. As a result, CORZ stock fell more than 1% in pre-market trade.

The analyst behind the downgrade, Stephen Glagola, noted that much of Core Scientific's near- to medium-term leasing potential already appears reflected in the stock price. He added that expected deals are taking longer than anticipated to materialize.

In contrast, Cipher Mining (CIFR), CleanSpark (CLSK), and Hut 8 (HUT) received higher price targets while keeping 'Outperform' ratings from Keefe Bruyette. CIFR's stock gained more than 5% in pre-market trade after its price target was raised to $32 from $27.

Keefe Bruyette also trimmed the price target on TeraWulf (WULF) and Riot Platforms (RIOT) stocks, but retained 'Outperform' ratings for both companies. Across the broader sector, the firm said demand for HPC colocation capacity remains robust, but it is becoming increasingly selective due to funding risks and model-layer risk among AI lab customers.