In a report released today, Josh Baer from Morgan Stanley maintained a Hold rating on Nebius Group, with a price target of $126.00.
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Trade NBIS with leverageJosh Baer has given his Hold rating due to a combination of factors, balancing Nebius’s distinct advantages with meaningful execution risks. On the positive side, he acknowledges the company’s lower total cost of ownership driven by custom infrastructure, its strong software capabilities backed by an experienced developer base, and a diversified customer mix that includes large, investment‑grade clients and strategic equity stakes that can support future capital needs.
At the same time, Baer highlights investor concerns around the broader neocloud model, including competitive pressure from hyperscalers, capital intensity, and uncertainty about long‑term software monetization and pricing dynamics as AI capacity expands. He also points to Nebius’s ambitious power and ARR targets, limited operating history, and sparse disclosures on data center build‑out and bookings as sources of risk. Collectively, the mix of differentiated strengths and unresolved questions leads him to an Equal‑weight, or Hold, stance rather than a more decisive positive or negative call.
In another report released on February 3, TipRanks – Anthropic also reiterated a Hold rating on the stock with a $88.00 price target.