Goldman Sachs upgraded CoreWeave to buy from neutral on Monday, Oct. 19, after a week in which worries about the AI cloud provider's borrowing knocked its shares down nearly 25% and pushed its bonds into distressed territory. Analyst Gabriela Borges cut her price target to $106 from $139, CNBC reported. "Not all neoclouds are created equal, and we view CoreWeave as being toward the top of the quality rankings in the ecosystem," she wrote.

Borges argued that the company's borrowing costs won't rise as much as its bond yields suggest. CoreWeave funds most of its buildout through delayed draw term loans, which she called "asset-backed project financings rather than traditional corporate debt," and she expects its blended cost of debt to rise by 100 to 200 basis points. The unsecured bond market "has already been closed to new CoreWeave issuance for several months," she wrote, according to Axios .

Credit investors were less forgiving.…