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Investing.com - DA Davidson raised its price target on Nebius Group (NASDAQ:NBIS) to $65.00 from $55.00 on Tuesday, while maintaining a Buy rating on the stock. The new target aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $47 to $84, with the stock already delivering an impressive 95% return year-to-date.
The firm noted a significant shift in investor interest from Nebius’s core business toward its non-core businesses, driven by the potential for the company to sell partial stakes in these operations to fund data center expansion. According to InvestingPro analysis, the company maintains strong liquidity with a current ratio of 18.0 and holds more cash than debt on its balance sheet, positioning it well for strategic expansion.
DA Davidson specifically highlighted the opportunity with Toloka, Nebius’s data annotation and synthetic data generation business, which has previously been identified as a valuable asset.
The firm also brought Avride into the discussion, suggesting this division "could eventually be worth the same, if not more than the core Nebius business."
The price target increase represents an 18.2% boost from the previous $55.00 target, reflecting DA Davidson’s continued confidence in Nebius Group’s diversified business model and growth strategy.
In other recent news, Nebius Group has announced several developments that could be of interest to investors. The company recently launched the NVIDIA (NASDAQ:NVDA) GB200 Grace Blackwell Superchip capacity in Europe, marking its first offering of this kind in the region. This expansion is part of Nebius’s strategy to integrate NVIDIA’s accelerated computing platform into its AI Cloud. Additionally, Nebius has partnered with Saturn Cloud to provide a comprehensive AI/ML infrastructure solution, leveraging NVIDIA Hopper GPUs and the NVIDIA AI Enterprise software stack. In terms of financial analysis, Goldman Sachs has initiated coverage of Nebius Group with a Buy rating and set a price target of $68. Meanwhile, DA Davidson has raised its price target for Nebius Group to $55, maintaining its Buy rating. These analyst actions reflect the company’s position in the competitive AI infrastructure market. In other company news, Sono Group has extended the maturity dates for four convertible debentures in agreement with Yorkville, pushing the date to August 1, 2025. These recent developments highlight significant movements in the AI and financial sectors for both companies.
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