Morgan Stanley Initiates Coverage on Nebius Group with $126 Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 07 2024
0mins
Should l Buy NBIS?
Source: businesswire
Nebius Group's stock rose by 5.00% as it crossed above the 5-day SMA, reflecting positive investor sentiment.
Morgan Stanley analyst Josh Baer initiated coverage on Nebius Group with an equal-weight rating and a price target of $126, indicating a potential upside of 23.55%. The firm highlighted Nebius's strategic positioning in the AI infrastructure sector and its ambitious goal to connect 700MW of AI cloud infrastructure by 2026, projecting annual recurring revenue to soar from $600 million to between $7 billion and $9 billion. Despite the compelling growth prospects, Nebius faces execution risks related to its scaling strategy, which may pressure short-term profitability.
The initiation of coverage by Morgan Stanley is likely to attract investor interest, as the company's aggressive expansion plans and strong revenue projections position it well in the rapidly growing AI market.
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Analyst Views on NBIS
Wall Street analysts forecast NBIS stock price to rise
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 147.160
Low
130.00
Averages
164.20
High
211.00
Current: 147.160
Low
130.00
Averages
164.20
High
211.00
About NBIS
Nebius Group NV is a Netherlands-based infrastructure company operating in the technology industry. The Company is engaged in developing a portfolio of artificial intelligence-related technology assets. It is involved in creating an artificial intelligence-centric player to integrate the essential elements of artificial intelligence development with infrastructure, data and advisory globally. It offers products and services such as a cloud platform for artificial intelligence-related workloads, development team services for autonomous vehicles, development of generative artificial intelligence. Nebius builds full-stack infrastructure to service the growth of the global AI industry, including GPU clusters, cloud platforms and tools and services for developers. Company is developing three other businesses that operate under their own brands: Toloka AI, TripleTen and Avride.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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