Nebius Group price target raised to $45 from $35 at DA Davidson

DA Davidson analyst Alexander Platt raised the firm’s price target on Nebius Group (NBIS) to $45 from $35 and keeps a Buy rating on the shares. Given the increasing demand from investors to better understand Nebius data center economics, compute capacity, and instance utilization rates, the firm is highlighting some recent analysis giving granular visibility into all major drivers and components of these topis and contends that there is considerable revenue upside within each of the company’s five data centers, the analyst tells investors in a research note. DA Davidson adds that it expects Nebius to strategically pursue co-location for its future regional expansion efforts, primarily to accelerate capacity deployment and revenue recognition.