Nebius target raised, named a ‘Top Pick’ at Northland after Microsoft deal

After Nebius (NBIS) announced on September 8 a $17.4B deal with Microsoft (MSFT) to deliver dedicated capacity from its new data center in Vineland, New Jersey, Northland said that “simplistically,” the terms announced imply the deal will add about $3.5B of ARR when the full run rate is achieved relative to the midpoint $1B ARR guidance for calendar year 2025. Based on discussions with management and other industry participants, the firm believes that scarcity of multi-100MW sites ready to deploy was a factor in Nebius winning the workload as well as “favorable economics,” says the analyst, who maintains an Outperform rating on Nebius shares, raised the firm’s price target to $206 from $77 and elevated the stock to the analyst’s “Top Pick.”