Dutch-based AI tech group Nebius (NBIS) is set to release its Q1 earnings report on Tuesday. This has some investors wondering whether it is a good idea to buy shares of NBIS beforehand.
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What Wall Street Expects
Wall Street is expecting Nebius Group to post a first quarter earnings of -$0.45 compared with $0.37 in the same period last year. Revenues are expected to come in at $57.7 million, up from $37.9 million in the fourth quarter helped by new AI customers and demand for Toloka, its data centers business.
Will Nebius be able to beat these estimates? As can be seen below, it has a good record of doing so in recent quarters.
What do Analysts Say Ahead of Earnings?
5-star analyst Nehal Chokshi, of Northland has an Outperform rating on the stock and a $34 price target. He likes its growth prospects and its ability to build itself as a solid brand in the AI industry. He believes that Nebius offers the “easiest and faster deployment of GPU clusters for startups and enterprises relative to hyperscalers.” He also likes its price advantage in comparison with rivals such as Amazon’s (AMZN) Amazon Web Services.
He believes that it is in a good position for continued revenues growth and cash generation.
The key focus for investors will be the expansion of the company’s AI infrastructure such as new data centers, but they will also keep an eye on the group’s AI cloud platform, its EdTech service called TripleTen and autonomous vehicle platform Avride.
Is NBIS a Good Stock to Buy Now?
On TipRanks, NBIS has a Strong Buy consensus based on 3 Buy ratings. Its highest price target is $60. NBIS stock’s consensus price target is $43 implying an 15.22% upside.
