Nebius Group stock rating reiterated at Buy by DA Davidson

Investing.com - DA Davidson has reiterated its Buy rating and $125.00 price target on Nebius Group (NASDAQ:NBIS), following news about the company’s autonomous vehicle unit. The stock, which has delivered an impressive 561% return over the past year, currently trades at $104.22, though InvestingPro analysis suggests the shares may be overvalued at current levels.

Avride, a non-core business of Nebius Group focused on autonomous vehicle technology, has secured commitments of up to $375 million backed by both Nebius and Uber.

The fresh capital will be used to advance product development and expand Avride’s autonomous vehicle fleet to 500 vehicles in new geographic areas.

The expansion will begin with the first 100 vehicles launching in Dallas later this year through a partnership with Uber.

DA Davidson maintained its positive outlook on Nebius Group, citing these developments as supportive of its existing Buy rating and $125 price target. The analyst target represents potential upside from current levels, though investors should note the stock trades at a P/E ratio of 109.8x.

In other recent news, Nebius Group has successfully raised approximately $1.15 billion in a Class A share offering, with underwriters fully exercising their option to purchase additional shares. This move comes alongside the company’s completion of a $1 billion share offering and a $3.16 billion notes sale, which included convertible senior notes due in 2030 and 2032. Meanwhile, Northland has raised its price target for Nebius Group to $206 from $77, maintaining an Outperform rating, influenced by the company’s recent deal with Microsoft. Additionally, Avride has secured up to $375 million in investments from Uber Technologies and Nebius Group, furthering its partnership with Uber to launch a robotaxi service by the end of 2025.

In other developments, Noba Bank Group is planning to list its shares on the Nasdaq Stockholm stock exchange, aiming for an implied equity value of approximately $3.74 billion. The digital lender intends to offer existing shares held by current shareholders in the upcoming third quarter. These recent developments highlight significant financial activities and strategic partnerships among these companies.

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