Citigroup Issues Pessimistic Forecast for Nebius Group (NASDAQ:NBIS) Stock Price

Key Points

• Citigroup cut its Nebius Group price target from $324 to $265 but maintained a Buy rating; the new target implies about 87% upside from the cited share price of $141.52.
• Analyst views remain mixed: MarketBeat reports a Moderate Buy consensus and an average price target of $239.56, with recent targets ranging from $175 to $399.
• Nebius reported quarterly revenue of $582.3 million, up 454% year over year, and a smaller-than-expected loss per share of $0.12; analysts expect a full-year loss of $3.19 per share.

Nebius Group (NASDAQ:NBIS - Get Free Report) had its price target lowered by investment analysts at Citigroup from $324.00 to $265.00 in a research note issued on Wednesday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. Citigroup's price objective would indicate a potential upside of 87.25% from the company's current price.

Several other equities analysts also recently commented on NBIS. Piper Sandler cut their target price on Nebius Group from $237.00 to $185.00 and set a "neutral" rating for the company in a research report on Wednesday, October 21st. DA Davidson reiterated a "neutral" rating and set a $175.00 price objective on shares of Nebius Group in a research note on Thursday, August 13th. Rosenblatt Securities started coverage on Nebius Group in a research note on Thursday, October 8th. They set a "buy" rating and a $304.00 price objective for the company. Freedom Capital raised Nebius Group from a "hold" rating to a "strong-buy" rating in a report on Monday, July 20th. Finally, BNP Paribas Exane upgraded shares of Nebius Group from a "neutral" rating to an "outperform" rating and boosted their target price for the company from $260.00 to $399.00 in a research note on Thursday, September 24th. Four analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $239.56.

Nebius Group Price Performance

Shares of NASDAQ:NBIS traded down $10.12 during midday trading on Wednesday, reaching $141.52. 22,425,972 shares of the company's stock were exchanged, compared to its average volume of 18,162,902. The company's 50 day simple moving average is $206.96 and its two-hundred day simple moving average is $177.30. The firm has a market capitalization of $35.81 billion, a PE ratio of -4,715.76 and a beta of 4.63. Nebius Group has a 12 month low of $73.52 and a 12 month high of $299.86. The company has a debt-to-equity ratio of 0.82, a quick ratio of 4.03 and a current ratio of 4.03.

Nebius Group (NASDAQ:NBIS - Get Free Report) last posted its quarterly earnings results on Thursday, August 13th. The company reported ($0.12) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.67) by $0.55. Nebius Group had a net margin of 4.55% and a negative return on equity of 6.03%. The firm had revenue of $582.30 million during the quarter, compared to analyst estimates of $567.91 million. During the same quarter in the prior year, the business posted $2.38 earnings per share. The company's quarterly revenue was up 454% compared to the same quarter last year. Equities research analysts expect that Nebius Group will post -3.19 earnings per share for the current fiscal year.

Insider Activity at Nebius Group

In other Nebius Group news, CRO Marc Boroditsky sold 7,000 shares of Nebius Group stock in a transaction on Monday, October 12th. The stock was sold at an average price of $211.23, for a total value of $1,478,610.00. Following the completion of the transaction, the executive owned 7,000 shares in the company, valued at approximately $1,478,610. The trade was a 50.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Wilson Boynton sold 333 shares of the business's stock in a transaction on Thursday, October 29th. The stock was sold at an average price of $173.07, for a total value of $57,632.31. Following the completion of the transaction, the director directly owned 403,189 shares in the company, valued at approximately $69,779,920.23. This represents a 0.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders acquired 1,718 shares of company stock valued at $280,207 and sold 158,823 shares valued at $38,168,832.

Institutional Investors Weigh In On Nebius Group

A number of hedge funds have recently added to or reduced their stakes in the stock. Vestor Capital LLC raised its stake in Nebius Group by 849.0% in the 3rd quarter. Vestor Capital LLC now owns 7,355 shares of the company's stock valued at $1,735,000 after acquiring an additional 6,580 shares during the period. Allspring Global Investments Holdings LLC increased its stake in shares of Nebius Group by 1,636.2% during the third quarter. Allspring Global Investments Holdings LLC now owns 266,592 shares of the company's stock worth $61,924,000 after purchasing an additional 251,237 shares during the period. Almanack Investment Partners LLC. increased its stake in shares of Nebius Group by 11.5% during the third quarter. Almanack Investment Partners LLC. now owns 970 shares of the company's stock worth $229,000 after purchasing an additional 100 shares during the period. StoneX Group Inc. lifted its holdings in Nebius Group by 731.9% during the 3rd quarter. StoneX Group Inc. now owns 8,411 shares of the company's stock worth $1,984,000 after purchasing an additional 7,400 shares during the last quarter. Finally, Pictet Asset Management Holding SA lifted its holdings in Nebius Group by 0.3% during the 3rd quarter. Pictet Asset Management Holding SA now owns 569,211 shares of the company's stock worth $134,265,000 after purchasing an additional 1,729 shares during the last quarter. Institutional investors own 21.90% of the company's stock.

Key Nebius Group News

Here are the key news stories impacting Nebius Group this week:

• Positive Sentiment: Nebius introduced live GPU spot pricing, capacity-reservation auctions and rebates for committed usage, while expanding grants and founder support for European AI startups. These efforts could improve customer visibility and help attract AI developers. Article: Nebius Group Unveils Live GPU Pricing And Builder Grants In Europe
• Neutral Sentiment: A director’s reported sale of 333 shares was made under a pre-arranged Rule 10b5-1 plan and reduced his holdings by just 0.08%, making it a limited signal about the company’s outlook. Article: Nebius Group Director Sells Shares
• Negative Sentiment: Democratic election victories in Texas have raised investor concerns about tighter oversight or a possible moratorium on data-center development. Texas represents a significant share of planned U.S. data-center power capacity, so restrictions could complicate industry expansion. The concern weighed on Nebius and other AI infrastructure stocks. Article: Texas Election and Planned Data Center Power
• Negative Sentiment: Investors are also questioning whether Nebius can deliver on its ambitious $9 billion annual recurring revenue goal. Rapid capacity expansion requires substantial investment, successful delivery and continued access to financing, raising execution and funding risks. Article: Nebius’s $9 Billion ARR Goal

Nebius Group Company Profile

Nebius Group N.V. is a technology company focused on providing cloud infrastructure and services for artificial intelligence and machine learning applications. Through its Nebius AI division, the company offers access to high-performance computing, graphics processing units (GPUs), storage, networking, and related tools designed to help businesses and developers train, deploy, and operate AI models.

The company also operates or supports other technology businesses, including Toloka, an AI data and evaluation platform; TripleTen, an online education provider focused on technology careers; and Avride, a developer of autonomous driving and delivery technologies.

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