Latest news with #TylerRadke
Yahoo
an hour ago
- Business
- Yahoo
CoreWeave Gets Citi Lift Ahead Of Q2
Nvidia (NASDAQ:NVDA)-backed CoreWeave (NASDAQ:CRWV) shot higher after Citi upgraded it to Buy from Hold, keeping a $160 target and saying the demand picture finally looks healthier ahead of its August 11 Q2 report. Tyler Radke pointed to rising capex from Microsoft (MSFT)which made up 72% of Q1 revenueas the backbone of his stronger fundamental view and closed a 90-day negative catalyst watch after the stock had fallen 45% from its peak. Warning! GuruFocus has detected 5 Warning Signs with NVDA. CoreWeave is the first cloud provider to deploy Nvidia's Blackwell Ultra GPUs, and that tech momentum helped fuel the rally even as the stock has slid 37% over the past month; it's still up about 157% from its $40 IPO price. Wall Street expects a loss per share of $0.23 on $1.08 B revenue for Q2, and Radke thinks the company's noncancellable contracts with roughly 4-year average durations give better near-term revenue visibility, setting the stage for potential beats and guidance raises. He calls CRWV a leader in GPU-as-a-Service with upside from verticalization up the software stack, but flags the flip side: limited trading history and heavy customer concentration make it high risk and prone to volatility. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
11 hours ago
- Business
- CNBC
CoreWeave is a buy after Microsoft's strong earnings report, Citi says
Investors should buy the recent dip in CoreWeave as strong AI demand will power shares higher, according to Citi. Analyst Tyler Radke upgraded the artificial intelligence cloud computing stock to buy from neutral. His price target of $160 implies upside of 55% from Wednesday's close. Despite more than doubling since its IPO in late March, CoreWeave has tumbled nearly 37% over the past month, with investors skeptical about the company's $9 billion acquisition of Core Scientific. That said, Radke noted that Microsoft's strong quarterly figures signal AI demand remains strong — which will boost CoreWeave long term. CRWV 1M mountain CRWV in past month "We come away with a much stronger fundamental view on the demand picture highlighted by MSFT (72% of 1Q25 revenue) beating/raising on Azure and raising capex with upside to finance leases," Radke wrote. "We feel incrementally more confident about the durability of AI demand and CRWV's position in the market, though still hold some concerns around customer concentration and Coreweave's ability to move up the stack," he added. CoreWeave shares popped more than 13% in the premarket, while Microsoft traded 8% higher. Radke's upgrade puts him in the minority on Wall Street. LSEG data shows that 17 of 24 analysts covering the stock rate it a hold, while three others have an underperform rating on it. Just four analysts rate CoreWeave as a buy or strong buy.
Business Insider
2 days ago
- Business
- Business Insider
All Eyes on Microsoft Stock Ahead of Earnings; Here's What Citi Expects
Microsoft (NASDAQ:MSFT) stock has been one of the strongest performers among the Magnificent 7 this year, driven by investors' confidence in the company's AI positioning. That optimism will be put to the test tomorrow when the tech giant reports its latest quarterly results after the market closes. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Citi's Tyler Radke is among those expecting a solid showing. The analyst believes the setup points to 'another strong quarter of positive revisions and upside to Q4+Q1 Azure numbers.' His conviction is rooted in a proprietary reseller survey (conducted alongside Citi's Research Innovation Lab), which revealed strong end-of-quarter trends and upbeat channel feedback. According to the survey, both trailing and forward twelve‑month growth rates rebounded to the high-teens year-over-year, marking a record pace. Resellers also reported one of their best quota achievement rates in recent years, with Azure AI standing out as the 'top driver of growth.' Customer and partner feedback throughout the quarter was equally optimistic, citing robust E5 expansions and a number of significant M365 CoPilot deals, though there were some signs of a slower overall pace in larger transactions. With those positive trends in tow, Radke anticipates at least 'modest beats' of one to two points across most top-line KPIs, particularly Azure consumption, which could see a 'slight reacceleration' to 36–37% YoYcc in FQ4. However, the analyst cautions that the upside may be somewhat muted compared to last quarter, given Q3's 'one-time capacity ramps.' Still, profitability is expected to tick higher, especially in the guidance, helped by recent workforce reductions. Looking ahead to F1Q, Radke forecasts Azure growth holding steady near 36%, slightly ahead of consensus, while FY26 CapEx guidance is likely to reflect ongoing investment discipline. In fact, the analyst has nudged his FY26 CapEx estimate up to $97 billion, representing about 11% y/y growth, which he believes will fuel a faster Azure and AI revenue ramp. His FY26 Azure growth forecast stands at 36%cc or higher, outpacing the 33.1% consensus. Beyond Azure, Radke also sees strength in other key segments: Productivity and Business Processes (PBP) gets a boost from Dynamics, while More Personal Computing (MPC) is riding a healthier recovery in the commercial PC market. Summing up his view, Radke called Microsoft stock his 'top pick,' citing its unmatched AI exposure, durable business model, and exceptional long-term pricing and margin power. Ahead of the print, Radke assigns MSFT a Buy rating and Street-high $613 price target, implying a potential 12-month return of ~20%. (To watch Radke's track record, click here) Elsewhere on the Street, sentiment remains bullish. With 30 additional Buy ratings and only 3 Holds, the consensus view stands at Strong Buy. Based on the $558.71 average price target, Microsoft shares are projected to climb another 9% over the coming year. (See MSFT stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Business Insider
15-07-2025
- Business
- Business Insider
Progress Software (PRGS) Gets a Hold from Citi
Citi analyst Tyler Radke maintained a Hold rating on Progress Software yesterday and set a price target of $57.00. The company's shares closed yesterday at $48.80. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Radke is a 4-star analyst with an average return of 5.9% and a 50.39% success rate. Radke covers the Technology sector, focusing on stocks such as Microsoft, CoreWeave, Inc. Class A, and Adobe. In addition to Citi, Progress Software also received a Hold from Jefferies's Brent Thill in a report issued on July 3. However, on July 1, D.A. Davidson reiterated a Buy rating on Progress Software (NASDAQ: PRGS). Based on Progress Software's latest earnings release for the quarter ending May 31, the company reported a quarterly revenue of $237.36 million and a net profit of $17.03 million. In comparison, last year the company earned a revenue of $175.08 million and had a net profit of $16.19 million
Yahoo
14-06-2025
- Business
- Yahoo
Citi Opens Positive Catalyst Watch on Microsoft (MSFT), Sees $605 Price Target on Strong Azure Outlook
Microsoft Corporation (NASDAQ:MSFT) is one of the . On June 11, Citi opened a positive catalyst watch on Microsoft. The firm said estimates for the company's Azure are too low. Its analyst, Tyler Radke, reiterated a 'Buy' rating on the stock with a $605.00 price target. 'We open a positive catalyst watch on MSFT with our view that Street Azure estimates are too low for FY26. This is supported by exit rate math and capex ROI analysis which supports Azure growth in the mid-to-high 30s% and recent read-throughs and positive checks. We believe the catalyst will be F'4Q25 earnings when FY26 guidance is announced and beyond as both Microsoft and OpenAI AI revenue continues to ramp.' A financial analyst working away on her laptop surrounded by financial reports and charts. Microsoft remains the firm's 'top pick in software given its relative defensiveness in a choppy macro environment, AI product cycle, and our reinforced conviction that Street estimates on Azure may be too low for FY26.' The firm has raised its base case estimate, now seeing '36.1% y/y cc FY26 Azure growth (vs. consensus at 32.1% y/y),' thereby raising its price target. Microsoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
