Piper Sandler lowered its price target on Nebius Group N.V. by 22%. The new target is $185, down from $237. The firm cited broad investor concerns regarding AI demand, financing, and return on capital for AI cloud providers. Piper Sandler maintained its "Neutral" rating on the stock. The firm noted the sector could remain "in the penalty box" until more clarity emerges on financing and free cash flow.
Nebius Chief Revenue Officer Marc Boroditsky stated the company's financing model is less exposed to market pressures affecting competitors. Speaking to CNBC, Boroditsky highlighted Nebius relies more on equity, convertible offerings, and upfront customer payments. This approach funds infrastructure expansion without significant debt.