Bank of America just raised its EUR/USD forecast
On Wednesday, DA Davidson analyst Alexander Platt increased the price target for Nebius Group (NASDAQ: NBIS) shares to $50.00, up from the previous $45.00, while reaffirming a Buy rating on the stock. According to InvestingPro data, the stock has shown remarkable momentum, gaining over 8% in the past week alone. This adjustment follows Nebius Group’s release of robust first-quarter earnings for the year 2025, which highlighted ongoing growth in their core business and an expansion of their data center operations.
The company’s management has confirmed their full-year core Annual Recurring Revenue (ARR) guidance to be between $750 million and $1 billion. They also conveyed expectations of reaching mid-single-digit billions in revenue and surpassing 1 gigawatt (GW) of capacity over the medium term. InvestingPro analysis shows the company maintains a strong balance sheet with a current ratio of 9.6, indicating robust liquidity. According to Platt, Nebius Group stands out as the leading neocloud company, optimally positioned to continue scaling its capacity. He also noted that the firm has access to various financing options that could help minimize shareholder dilution and financial leverage.
Nebius Group’s first-quarter performance has evidently met or surpassed the benchmarks set by analysts, leading to a positive outlook on the company’s financial health and market position. The reaffirmed guidance and ambitious medium-term goals suggest a strong trajectory for the company’s growth and operational expansion. InvestingPro data reveals impressive momentum, with the stock delivering a remarkable 106% return over the past year and analysts forecasting sales growth of 307% for the current year. For deeper insights into Nebius Group’s growth potential and comprehensive analysis, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
The raised price target from DA Davidson reflects confidence in Nebius Group’s strategic direction, particularly in its ability to scale operations while managing financial risks effectively. The analyst’s commentary underscores the company’s potential to maintain its momentum and reinforces its status as a top pick within the neocloud sector.
Investors and market watchers will likely keep a close eye on Nebius Group’s progress towards its stated revenue and capacity goals. The updated price target signifies the analyst’s belief in the company’s value proposition and its prospects for continued success in the evolving cloud infrastructure landscape.
In other recent news, Nebius Group reported a substantial 385% increase in revenue for the first quarter of 2025, reaching $55.3 million, although this figure fell short of the analyst consensus estimate of $57.7 million. The company’s core AI infrastructure business was a key driver of this revenue growth. Despite the revenue surge, Nebius Group’s adjusted EBITDA loss narrowed to $62.6 million, improving by 12% compared to the previous year, while the net loss from continuing operations widened to $113.6 million. Operating expenses as a percentage of revenue decreased significantly, reflecting improved operational efficiency. Additionally, Nebius Group announced a strategic investment in its AI data solutions business, Toloka, with backing from Bezos Expeditions and Shopify (NASDAQ:SHOP)’s CTO, Mikhail Parakhin. This investment aims to boost Toloka’s growth and strategic positioning in the AI data solutions market. The company’s cash used in operating activities increased to $197.8 million, compared to $69.8 million in the same period last year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.