Goldman Sachs maintains Buy on Nebius Group, raises PT to $120.

Goldman Sachs maintains Buy on Nebius Group, raises PT to $120.

Goldman Sachs has maintained its "Buy" rating on Nebius Group (NASDAQ:NBIS) and raised its price target to $120, according to a recent report. The investment bank's upgrade comes as Nebius Group continues to make significant strides in the AI infrastructure sector.

Nebius Group, a leading AI infrastructure company, recently announced a $17.4 billion deal with Microsoft to supply GPU infrastructure capacity over a five-year period. The agreement underscores the company's growing importance in the AI space and highlights its ability to secure large-scale partnerships.

In addition to the Microsoft deal, Nebius Group has been actively raising capital through a combination of stock and debt offerings. The company closed a $1 billion stock offering and a $2 billion convertible bond offering, with Goldman Sachs acting as the lead bookrunner for the stock offering. The proceeds from these transactions will be used to finance the company's growth, including the acquisition of additional compute power and hardware, expansion of its data center footprint, and securing strategic land plots.

Analysts have been bullish on Nebius Group, with a consensus rating of "Buy" and an average price target of $80.80, according to data from MarketBeat. Several research firms, including Goldman Sachs, Arete, and Northland Securities, have initiated coverage on Nebius Group and issued "Buy" ratings with varying price targets ranging from $47.00 to $84.00 5,230 Shares in Nebius Group N.V. $NBIS Purchased by Confluence Investment Management LLC^[1].

Nebius Group's strong performance in the second quarter, with revenue of $105.10 million and earnings per share of ($0.38), has further bolstered investor confidence. The company's ability to exceed analysts' estimates and secure large-scale partnerships positions it as a key player in the AI infrastructure sector.

Despite the recent stock offering, Nebius Group's shares have seen significant growth, with a year-to-date return of over 245% as of the close on Tuesday Nebius eases on planned $1 bln stock, $2 bln convertible debt offerings^[2]. The company's market capitalization stands at approximately $23 billion, reflecting its strong valuation in the market.

Goldman Sachs' upgrade and price target raise reflect the investment bank's optimism about Nebius Group's growth prospects and its potential to capitalize on the growing demand for AI infrastructure. The company's strategic partnerships, strong financial performance, and robust analyst coverage position it as a promising investment opportunity in the AI sector.