11:07 AM EDT, 06/16/2025 (MT Newswires) -- CoreWeave ( CRWV ) needs to have access to "reasonably" priced debt as it historically financed 85% of its capital expenditures through its debt, BofA Securities said in a Monday note.

The company's capital expenses are expected to reach $206 billion in 2027, rising 4% annually, but there is "solid" sustained demand in CoreWeave's ( CRWV ) artificial intelligence infrastructure sector due to ChatGPT's weekly active users reaching 800 million last month, analyst Brad Sills wrote.

There are positives for the company, including a new hyperscaler client, OpenAI deal expansion, and debt raise at a lower cost of capital, the analyst said.

BofA Securities downgraded CoreWeave ( CRWV ) to neutral from buy and raised its price target to $185 from $76.

Shares of the company were up more than 6% in recent Monday trading.

Price: 156.65, Change: +9.46, Percent Change: +6.42