D.A. Davidson Sets $250 Target, Flags 30% Backlog Premium for Nebius
NBIS•D.A. Davidson downgraded Nebius Group to a Neutral rating with a $250 price target, citing strong execution, minimal net debt and a diversified AI cloud strategy including Avride and ClickHouse assets. The bank projects revenue rising from $534 million in 2025 to $3.36 billion in 2026 and $10.6 billion in 2027, but warns a roughly 30% premium to backlog limits near-term upside.
1. Rating Change and Price Target
D.A. Davidson initiated coverage on Nebius Group with a Neutral rating and assigned a $250 price target, reflecting a more cautious stance after the stock’s rapid ascent over the past year.
2. Balanced Strategy and Asset Highlights
The firm highlighted Nebius’ strong execution, capital discipline and minimal net debt position, noting its diversified AI cloud approach and potential upside from owned assets Avride and ClickHouse.
3. Growth Projections and Upside Constraints
Analysts forecast Nebius revenue rising from $534 million in 2025 to $3.36 billion in 2026 and $10.6 billion in 2027, but caution that a 30% premium to its backlog will constrain near-term share appreciation.
