1249 ET - The risks associated with CoreWeave are real, but they are "more than adequately priced-in" at the stock's recent valuation of around three times 2027 revenue, UBS analysts write in a note, initiating coverage with a buy rating. They identify several risks hanging over the stock: the leverage needed to finance CoreWeave's data center buildout, the profitability of AI infrastructure, customer concentration, competition in the cloud market, and bottlenecks tampering new data center construction. "In our view CoreWeave shares at 3x 2027 revs already reflect these concerns and may not reflect the strength of demand and the upward revisions to revenue estimates as each GW of AI compute capacity can be monetized at higher price points," the analysts write.