DA Davidson reiterates buy rating and $50 target for Nebius stock

On Monday, DA Davidson analysts reaffirmed their buy rating on Nebius Group stock (NASDAQ: NBIS), maintaining a price target of $50.00, which sits in the middle of the current analyst range of $47-$60. The stock has shown remarkable momentum, delivering a 94% return over the past year. This decision comes as interest grows in the company’s non-core components.

The analysts highlighted the potential of Nebius Group’s Toloka AI, emphasizing its role in the data pipeline ecosystem. They pointed out the increasing importance of high-quality data in advancing frontier AI models, noting that providers of synthetic data and human-curated reward verification are poised to capture a larger share of pre and post-training expenditures. According to InvestingPro data, the company maintains a strong financial position with a current ratio of 18.0 and minimal debt-to-equity of 0.06.

DA Davidson’s evaluation suggests that Nebius Group’s offerings in these areas are well-positioned to benefit from this trend. The analysts believe that the company’s focus on these non-core components could drive significant opportunities. InvestingPro analysis reveals 8 additional key insights about Nebius Group’s market position and growth potential, available to subscribers.

The reiterated buy rating and price target reflect DA Davidson’s confidence in Nebius Group’s strategic direction and market potential. With a market capitalization of $8.75 billion and trading near its InvestingPro Fair Value, the analysts’ assessment underscores the company’s value proposition within the evolving AI landscape.

In other recent news, Nebius Group reported a remarkable 385% year-over-year increase in revenue for the first quarter of 2025, reaching $55.3 million, though this fell slightly short of the analyst consensus estimate of $57.7 million. The company’s adjusted EBITDA loss improved by 12% to $62.6 million, while the net loss from continuing operations widened to $113.6 million. Additionally, Nebius Group has successfully secured $1 billion through a private placement of senior unsecured convertible notes, aimed at enhancing its business operations and accelerating infrastructure development. The notes offering was facilitated by Goldman Sachs Bank Europe SE and targets qualified institutional buyers.

In a strategic move, Nebius appointed Marc Boroditsky as the new Chief Revenue Officer, bringing his extensive experience from previous roles at technology firms like Twilio (NYSE:TWLO). DA Davidson analyst Alexander Platt raised the price target for Nebius Group shares to $50, maintaining a Buy rating, following the company’s strong first-quarter earnings. Platt expressed confidence in Nebius’s capacity to scale operations and manage financial risks effectively. Furthermore, Nebius announced a strategic investment in its AI data solutions business, Toloka, led by Bezos Expeditions and Shopify (NASDAQ:SHOP)’s CTO, Mikhail Parakhin, to bolster its growth in the AI data solutions market. These developments indicate Nebius’s ongoing commitment to expanding its market position and operational capabilities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.