More than 70% of analysts recommend buying Nebius. Why is Wolfe not among them?

Investment company Wolfe Research has initiated analyst coverage of Nebius, which develops infrastructure for artificial intelligence, giving it a hold recommendation, Tipranks writes. Wolfe's assessment is at odds with the market consensus: more than 70% of experts advise buying Nebius' securities despite the fact that they have already risen in price by about 658% over the past 12 months. Why was Wolfe's forecast more restrained?

Wolfe Research analyst Arseniy Matovich initiated coverage of Nebius shares with a neutral recommendation, estimating their fair value in the range of $80 to $170, Tipranks writes. The lower bound of the target implies a nearly 50% drop in the company's securities relative to the last closing price. The upper boundary of its valuation implies growth of the stock by 8%.

Matovich noted that demand for Nebius' cloud infrastructure appears robust and largely "de-risked," especially after major contracts with Microsoft and Meta Platforms. In March, the company signed a $27 billion long-term agreement with Meta to deliver AI infrastructure, including one of the first large-scale deployments of NVIDIA's Vera Rubin platform. In September 2025, Nebius signed a five-year contract with Microsoft worth up to $19.4 billion, under the terms of which it will provide the US IT giant with infrastructure capacity based on graphics processing units (GPUs, used for AI).

Despite strong demand, Matovich maintains a cautious stance. The analyst points to the risks of realization and financing of planned projects, which, in his opinion, Nebius "has yet to confirm".

On April 9 investment bank Cantor Fitzgerald started coverage of Nebius securities with a buy recommendation (Overweight rating) and $129 target price. This target is 18% lower than the closing price of the last trades.

Wall Street analysts generally recommend buying Nebius stock: 13 out of 18 tracking the company. Four take a neutral stance and advise holding Nebius in their portfolios, and only one advises selling.

This article was AI-translated and verified by a human editor