Overview
- Freedom Capital downgraded Nebius (NBIS) to Hold and raised its price target to $154, citing a near‑term valuation stretch after a more than 70% rise since its February initiation at $88.
- The firm lifted its 2026–2027 revenue and adjusted EBITDA estimates above Wall Street consensus, projecting revenue up 209% and EBITDA up 336% from 2026 to 2027.
- The new target implies about 6 times Nebius’s projected 2027 EBITDA, a common cash‑flow yardstick, versus about 25 times this year, suggesting fundamentals need time to catch up.
- Nebius shares are up about 94% so far in 2026, according to Yahoo Finance, as investors pile into its AI‑focused cloud infrastructure story.
- The company is expanding fast, aiming to grow from seven data centers in 2025 to 16 by the end of 2026, which requires heavy spending and pushes out profitability.