Spain’s credit rating upgraded to ’A+’ by S&P on strong growth
Investing.com - Goldman Sachs has reiterated its Buy rating and $77.00 price target on Nebius Group (NASDAQ:NBIS), citing the company’s recent Microsoft deal as a significant catalyst for growth. According to InvestingPro data, NBIS has delivered an impressive 238% return over the past year, with analyst targets ranging from $75 to $128.
The investment bank views the agreement as a major driver for Nebius’ AI Infrastructure business, particularly its GPU-as-a-Service offering, which is expected to boost topline growth. With a market capitalization of $15.29 billion and a healthy gross margin of 53.67%, Nebius appears well-positioned to capitalize on this opportunity.
Goldman Sachs believes the deal demonstrates Nebius’ ability to work with AI hyperscalers and could potentially lead to additional large contracts, given the size of the agreement implies trust in Nebius’ scaling capabilities. InvestingPro analysis reveals the company maintains strong financial health with a current ratio of 14.7, suggesting ample liquidity to support expansion plans.
The firm notes that the scale of the agreement and associated financing flexibility should enable Nebius to accelerate capacity expansion beyond the company’s previous expectations, with cash flows from the deal helping with the required buildout. For deeper insights into Nebius’s growth potential and financial metrics, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks.
Goldman Sachs also highlights that Nebius indicated the economics of the deal are attractive, suggesting good gross margins, while the agreement will help accelerate the growth of Nebius’ AI cloud business further in 2026 and beyond. Analysts forecast strong revenue growth for FY2025, supporting the company’s ambitious expansion plans.
In other recent news, Nebius Group announced a significant five-year contract with Microsoft valued at $17.4 billion, with the potential to increase to $19.4 billion. This contract will see Nebius delivering AI compute capabilities to Microsoft starting this year. Following this announcement, DA Davidson reiterated its Buy rating on Nebius Group and raised its price target from $65 to $75, citing strong second-quarter 2025 results and accelerated data center expansion plans. BWS Financial also raised its price target on Nebius Group to $90, highlighting the company’s impressive second-quarter performance and the immediate sell-out of its GPU capacity. Additionally, DA Davidson previously increased its price target to $65 due to growing investor interest in Nebius’s non-core businesses, which could potentially fund further expansion. These developments reflect a series of strategic moves and robust performance metrics for Nebius Group.
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