Freedom Capital Initiates Coverage of Nebius Group (NBIS) with Buy Rating, $108 PT

Core Viewpoint - Nebius Group (NASDAQ:NBIS) is viewed as a mixed investment opportunity in the AI sector, with varying ratings from different firms indicating both potential and caution regarding its valuation and growth prospects [1][3]. Group 1: Company Overview - Nebius Group is a technology company that builds full-stack infrastructure to service the global AI industry, operating in regions including the Netherlands, Europe, North America, and Israel [4]. Group 2: Analyst Ratings and Price Targets - Freedom Capital initiated coverage of Nebius with a Buy rating and a price target of $108, highlighting its role as a vertically integrated cloud platform for AI workloads [1][7]. - Morgan Stanley also initiated coverage with an Equal Weight rating and a price target of $126, noting strong external validation for Nebius's AI cloud but expressing concerns about aggressive near-term targets due to required net new bookings [3]. Group 3: Market Potential and Growth - Nebius is recognized for providing cost-efficient, high-performance computing tailored for AI-native companies, with ongoing investments in infrastructure and product development expected to drive rapid revenue growth in a large, expanding addressable market [2].