Freedom Capital upgraded Nebius (NBIS) to 'Buy' from 'Hold' and raised its price target to $200 from $159, citing the stock's over 40% decline from its recent peak as creating a more attractive entry point. NBIS shares were up 4.1% in pre-market trading on Monday. The upgrade follows the AI cloud company's announcement last week of a $775 million senior secured debt facility to accelerate global AI cloud platform expansion. Freedom Capital maintained its long-term bullish outlook on Nebius, noting the company's strong pipeline and more than $40 billion in contracted revenue from investment-grade customers including Microsoft and Meta.
Freedom Capital Upgrades NBIS to Buy After 40% Decline
Freedom Capital raised its rating on NBIS from 'Hold' to 'Buy' and lifted its price target to $200 from $159. The firm noted that the stock has fallen more than 40% from its recent peak, as of Friday's close. The stock hit an all-time high of $299.86 on June 22, 2026. "Perhaps there's enough risk squeezed out of this name to finally recommend buying it," the firm said as per The Fly, adding that its long-term bullish view has not changed despite valuation concerns that prompted a downgrade in April.
Freedom Capital Raises Revenue and EBITDA Forecasts
Earlier, Freedom Capital increased its full-year 2026 and 2027 revenue and adjusted earnings before interest, tax, depreciation and amortization (EBITDA) forecasts, expecting revenue and adjusted EBITDA to grow 209% and 336%, respectively. The firm cited Nebius' plan to add 310 MW of AI data center capacity in Lappeenranta, Finland, beginning next year, as a key driver for 2027 growth. The company noted that it has more than $40 billion in contracted revenue from investment-grade customers, including Microsoft and Meta, and expects to secure additional financing on terms similar to those it has secured to date as it continues to expand its AI infrastructure footprint.
Nebius Secures $775 Million Debt Facility
Last week, Nebius secured a $775 million senior secured debt facility, with proceeds earmarked to accelerate the global build-out of its AI cloud platform. The financing is backed by deployed GPU infrastructure and contracted cash flows from an investment-grade customer, the company said. Nebius also unveiled a new infrastructure partnership model to accelerate the global expansion of its AI cloud platform. Under the strategy, infrastructure partners will finance, own, and operate AI data centers, while Nebius will provide its AI systems architecture, software stack, and customer relationships.
Retail Sentiment Remains Extremely Bullish
Retail sentiment surrounding NBIS on Stocktwits remained in the 'extremely bullish' zone over the past 24-hours, amid 'high' message volumes. One user expects the stock to climb to $200 by the end of the session. The stock has seen strong buying interest so far this year, gaining more than 97%.
FAQ
What did Freedom Capital do with its NBIS rating?
Freedom Capital upgraded Nebius (NBIS) to 'Buy' from 'Hold' and raised its price target to $200 from $159, citing the stock's over 40% decline from its recent peak as creating a more attractive entry point.
How much debt financing did Nebius secure last week?
Last week, Nebius secured a $775 million senior secured debt facility to accelerate the global build-out of its AI cloud platform. The financing is backed by deployed GPU infrastructure and contracted cash flows from an investment-grade customer.
What are Freedom Capital's revenue and EBITDA growth forecasts for Nebius?
Freedom Capital increased its full-year 2026 and 2027 revenue and adjusted EBITDA forecasts, expecting revenue and adjusted EBITDA to grow 209% and 336%, respectively.
