A Seeking Alpha analyst initiated coverage of Nebius Group N.V. (NBIS) with a Sell rating. The analyst set a $95 price target, suggesting a potential 49% decline from current trading levels.
The bearish outlook stems from concerns that easing GPU capacity constraints will threaten rapid revenue growth. Increased supply may negatively impact the company's pricing power and margins. The report also identifies stretched valuations and significant capital expenditures as risks to near-term profitability.
This contrarian view emerges despite a more bullish consensus from other Wall Street firms. Baird and Northland Capital Markets recently issued positive ratings with higher price targets. Those analysts cited strong demand for AI infrastructure as a primary growth driver.