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DA Davidson raised its price target on Nebius Group (NASDAQ:NBIS) stock to $55.00 from $50.00 on Monday, while maintaining a Buy rating on the shares. The stock, currently trading at $47.13, has shown remarkable strength with a 148.84% return over the past year. According to InvestingPro, analyst targets range from $47 to $84, with the company maintaining strong liquidity metrics.
The firm cited recent developments in the competitive landscape following Meta (NASDAQ:META)’s $14.3 billion investment in Scale AI for 49% of the company, which was reported and confirmed last week.
Meta also recruited Scale’s founder and CEO, Alexandr Wang, to lead its superintelligence team, effectively removing a key competitor from the market according to DA Davidson’s analysis.
The investment bank noted that this deal opens up "considerable share for alternative providers to capture" in the data generation and labeling market.
DA Davidson referenced its recent analysis on the growing opportunity for Toloka in this market segment as part of its rationale for the increased price target on Nebius Group.
In other recent news, Nebius Group has successfully secured $1 billion through a private placement of senior unsecured convertible notes, divided into two tranches with differing interest rates and maturity dates. The capital will be used to enhance business operations, including expanding data center facilities and increasing computing power. In addition, Nebius has launched NVIDIA (NASDAQ:NVDA) GB200 Grace Blackwell Superchip capacity in Europe, marking a significant expansion of its AI infrastructure. The company also announced a partnership with Saturn Cloud to offer a turnkey AI/ML infrastructure solution, leveraging NVIDIA Hopper GPUs and providing lower-cost access to AI capabilities. DA Davidson recently reiterated its buy rating on Nebius stock, maintaining a price target of $50, citing the company’s strategic focus on non-core components like Toloka AI. Furthermore, Nebius has appointed Marc Boroditsky as its new Chief Revenue Officer, with expectations to leverage his experience to scale the company’s revenue. These developments indicate Nebius’s ongoing efforts to expand its global AI infrastructure and strengthen its market position.
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