BofA Ups Nebius Price Target to $205 as AI Cloud Demand Grows
BofA reiterated its Buy rating on Nebius and raised its price target from $175 to $205, sending the stock higher. The company heads into Q1 earnings with robust AI cloud demand and rapid expansion but faces high spending and lofty valuation concerns.
1. BofA Raises Rating and Price Target
BofA Securities reiterated its Buy rating on Nebius and boosted its price target from $175 to $205, reflecting confidence in the company’s growth trajectory and prompting an intraday stock uplift.
2. Q1 Earnings Outlook and AI Demand
Nebius heads into first-quarter earnings bolstered by accelerating AI cloud adoption across enterprise clients and ongoing expansion of its data center infrastructure to meet rising demand.
3. Valuation and Spending Concerns
Analysts caution that Nebius’ aggressive investment in research, development and network build-out, coupled with a valuation premium over peers, could pressure margins and heighten downside risk if growth slows.