Piper Sandler initiated coverage on Nebius Group N.V. (NASDAQ: NBIS) with a Neutral rating. The firm established a price target of $224.00 for the AI-focused cloud infrastructure provider.
Analysts cited specific near-term risks at a single data center as the primary reason for the cautious stance. However, the report highlighted the company's explosive growth and potential to build a significant recurring revenue business.
Piper Sandler expressed a favorable long-term view on the neocloud industry. The firm noted that both Nebius and competitor CoreWeave are well-positioned to benefit from early-stage AI infrastructure expansion.
This initiation follows a recent Outperform rating from Baird. Financial analysts are increasingly focusing on the specialized AI cloud market as infrastructure build-outs accelerate.