Rothschild Redburn Lowers Price Target for Core Scientific Amid Valuation Concerns
Rothschild Redburn has initiated coverage on Core Scientific Inc., assigning a Neutral rating and setting a price target of $16.00, according to a recent note.
The stock currently trades at $17.99, above the target, and InvestingPro data suggests the company appears overvalued based on its Fair Value analysis.
Core Scientific is a US company founded in 2017 that grew into one of the largest mining operators in North America, with multiple large-scale, power-dense data centers across the US to run its own mining hardware and host third-party miners’ equipment.
The company's financial struggles led it into Chapter 11 bankruptcy in late 2022 due to rising energy costs, mining difficulty, and the 2022 crypto downturn. Core Scientific emerged from bankruptcy in early 2024 with a restructured balance sheet.
Following its emergence, Core Scientific pivoted a meaningful portion of its data center capacity from Bitcoin mining toward high-performance computing and AI hosting. The company signed large colocation and hosting agreements with AI infrastructure customers, including, to lease power and space while continuing to run a self-mining Bitcoin business.