Wall Street closes at a record for the first time since end of January
Investing.com - Goldman Sachs raised its price target on Nebius Group (NASDAQ:NBIS) to $205 from $160 while maintaining a Buy rating following the company’s contract win with Meta. The stock currently trades at $152.80, up 574% over the past year, though InvestingPro data suggests the shares may be overvalued at current levels.
Nebius signed a $27 billion long-term contract with Meta on March 16 to supply AI compute infrastructure. The deal includes $12 billion of dedicated capacity to Meta over a five-year period starting early 2027.
Meta committed to purchase additional compute capacity for up to $15 billion over a five-year period across upcoming Nebius clusters. Goldman Sachs raised its revenue estimates for fiscal years 2027 through 2030 by approximately 30% to 54% to reflect the contract. According to InvestingPro Tips, analysts anticipate sales growth in the current year, with the company posting 351% revenue growth over the last twelve months.
The firm kept its fiscal 2026 revenue estimate unchanged. Gross profit estimates for fiscal 2026 remain unchanged but increase by 33% to 54% across fiscal 2027 through 2030 due to higher revenue projections.
Goldman Sachs’ EBITDA estimates for fiscal 2026 are unchanged but increase between 35% and 58% across fiscal 2027 through 2030. The firm’s EBIT estimates for fiscal 2026 remain unchanged but vary between negative 4% and positive 83% across the forecast period.
In other recent news, Nebius Group has made several significant announcements. The company priced a $4 billion convertible senior notes offering, which was upsized from a previously announced $3.75 billion. The offering includes $2.25 billion of 1.250% convertible notes due in 2031 and $1.75 billion of 2.625% convertible notes due in 2033. In addition, Nebius announced plans to build a 310 MW AI factory in Lappeenranta, Finland, aiming to have the first capacity available to customers by 2027. This facility is expected to be one of Europe’s largest dedicated AI factories upon completion.
Furthermore, BofA Securities initiated coverage on Nebius with a buy rating and set a price target of $150, indicating a potential 31% upside. However, Freedom Capital Markets downgraded Nebius to a Hold from Buy, citing the stock’s rapid appreciation as a concern, despite raising the price target to $154. These developments reflect a mix of strategic expansion and cautious market evaluation for Nebius Group.
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