Nebius initiated with an Equal Weight at Morgan Stanley

Morgan Stanley initiated coverage of Nebius (NBIS) with an Equal Weight rating and $126 price target The firm says the company’s vertically integrated AI cloud has seen “strong external validation and key reference customers.” However, Nebius’ near-term targets look aggressive given the significant net new bookings required, the analyst tells investors in a research note. Morgan Stanley sees a full valuation at current share levels.