Update shared on18 Aug 2025
Fair value Increased 20%Nebius Group’s consensus price target was raised to $89.40 as analysts cited strong Q2 revenue outperformance, increased management guidance, and a leading position in AI neo-cloud, driving robust growth expectations and improved risk/reward.
Analyst Commentary
- Strong Q2 results with an "apples to apples" revenue beat of approximately $15M (~17%) driven by robust core business performance, even after excluding Toloka.
- Increased management confidence signaled by raising 2025 ARR guidance to $900M-$1.1B from $750M-$1B, with expectations of accelerating incremental ARR growth.
- Bullish analysts cite Nebius's leading position in the artificial intelligence neo-cloud market as a key growth driver.
- Company’s full stack software offering, cost advantages, and operational expertise at scale position it favorably for continued market share gains.
- Bullish analysts highlight a compelling risk/reward profile at current valuation, with substantial upside potential projected.
What's in the News
- Nebius Group raised its full-year 2025 annualized run-rate revenue guidance to $900 million–$1.1 billion, and reaffirmed previous core business and group revenue guidance, excluding deconsolidated Toloka.
- The company announced amendments to its Articles of Association, including reductions in authorized Class B and C shares and procedures for capital reduction.
- Nebius expanded its AI infrastructure in Europe and the UK, deploying NVIDIA Blackwell Ultra GPUs and offering advanced AI cloud capabilities to support enterprise, healthcare, and public sector clients.
- Strategic partnerships with ASUS and projects like Milestone’s Project Hafnia, using Nebius cloud and NVIDIA platforms, highlight the company’s leadership in compliant, large-scale AI solutions for smart city and research applications.
- Nebius completed a $1 billion private placement of senior unsecured convertible notes due 2029 and 2031, with 2% and 3% interest rates and conversion premiums of approximately 68% and 75%, targeting qualified institutional buyers.
Valuation Changes
Summary of Valuation Changes for Nebius Group
- The Consensus Analyst Price Target has significantly risen from $74.60 to $89.40.
- The Consensus Revenue Growth forecasts for Nebius Group has significantly risen from 133.9% per annum to 160.9% per annum.
- The Future P/E for Nebius Group has significantly fallen from 64.29x to 56.08x.
Disclaimer
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