Nebius Group stock price target raised to $206 from $77 at Northland

Investing.com - Northland has raised its price target on Nebius Group (NASDAQ:NBIS) to $206.00 from $77.00 while maintaining an Outperform rating on the stock. The company, currently valued at $26.9 billion, has seen its stock surge nearly 470% over the past year, according to InvestingPro data.

The significant price target increase follows Nebius Group’s recent success in securing a deal with Microsoft, which Northland attributes to the company’s scarcity value and attractive economics.

Northland believes Nebius Group’s cost advantages played a key role in winning the Microsoft contract, demonstrating the company’s competitive positioning in the market.

The analyst firm highlighted Nebius Group’s "world-class engineering capability" evidenced by quick ramps and greater focus on virtualized infrastructure as factors supporting the positive outlook.

Northland has increased its terminal period revenue estimate for Nebius Group due to a revised AI-as-a-Service total addressable market projection from $560 billion to $800 billion, along with raising its market share estimate from 3% to 9%, making NBIS the firm’s top pick.

In other recent news, Nebius Group N.V. has successfully raised a total of approximately $4.3 billion through a combination of Class A share offerings and convertible notes. The company completed a public offering of 10,810,811 Class A ordinary shares at a price of $92.50 per share, generating around $1 billion. Additionally, Nebius Group closed a private offering of convertible senior notes, which included two series maturing in 2030 and 2032, amounting to an aggregate principal of approximately $3.16 billion. The convertible notes offering was upsized from an initial $2 billion to $2.75 billion, split evenly between the two series. Underwriters exercised their option to purchase additional shares, contributing to the total gross proceeds of $1.15 billion from the Class A share offering. The initial closing of these offerings took place on September 15, coinciding with the closing of the convertible notes offering. Meanwhile, Noba Bank Group is planning to list its shares on the Nasdaq Stockholm stock exchange, aiming for an implied equity value of $3.74 billion.

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