JPMorgan is staying bullish on CoreWeave within the lead-up to its quarterly outcomes Tuesday after the bell. Analyst Mark Murphy raised his price target on the cloud computing inventory to $135 from $66, implying greater than 4% upside from Friday’s shut, and maintained his obese score. Murphy mentioned he is “cautiously optimistic” on the long-term prospects of the corporate, particularly after it secured a five-year cope with OpenAI earlier this 12 months for synthetic intelligence knowledge facilities at $11.9 billion. “Our sense is that CoreWeave’s opportunities are going to get bigger and lumpier, likely to the surprise of investors, though we are not making a specific call on the upcoming Q2 results as it is likely a futile exercise to speculate on the closing of specific deals and investors should in fact expect extreme lumpiness in CoreWeave’s pattern of large bookings,” the analyst wrote in a word dated Sunday. While Murphy thinks CoreWeave’s long-term synthetic intelligence ramp is “clear” and “intact,” he mentioned the timing between its massive bookings and buildouts stay an overhang on a quarterly foundation. That might create “ongoing extreme volatility in CRWV shares,” he mentioned. CRWV 3M mountain CRWV, 3-month Still, the analyst is optimistic in regards to the trajectory of the corporate’s enterprise pipeline, which might finally result in development in the long term. “Although timing and lumpiness still give us pause and create extreme volatility, we are positive on the potential for continued momentum in CoreWeave’s business pipeline, and our field work suggests long-range potential for binary-outcome transactions which are very difficult to handicap and, if successful, can drive a very surprising magnitude of outsized growth and outsized debt financing with short-term cash burn,” Murphy mentioned. Murphy is within the minority of analysts overlaying the inventory, as 16 out of 24 in complete have stepped to the sidelines with a maintain score, per LSEG. Its roughly $100 consensus target additionally implies greater than 22% draw back. The inventory was virtually 3% increased in premarket buying and selling Monday. Shares have soared greater than 152% over the previous three months however solely about 3% over the previous month.