Nebius Stock Slips as Analysts Trim Targets

What happened

Compass Point cut its Nebius price target to $245 from $300 and kept a Buy rating; Baird lowered its target to $200 from $340 while retaining Outperform. Nebius reported higher third-quarter revenue and adjusted EBITDA, but cited delays, weaker revenue guidance and higher planned capital spending.

Confirmed

Global impact / market context

Delays could push back Nebius’s revenue growth while requiring more spending on data centers and other capacity. That combination may leave less cash available before the added infrastructure begins generating income, although longer-term customer prepayments and higher pricing could help cover costs.

Analyst inference

The article presents mixed operating signals: revenue and adjusted EBITDA, a measure of operating performance, beat consensus, but some revenue was non-recurring and delays weakened the outlook. Analysts also disagreed in their targets, with Rosenblatt retaining a higher target and Buy rating.

Analyst inference

What to watch

1. Watch whether Nebius meets its 2026 revenue guidance, which was moved to the low end of its $3.0 billion to $3.4 billion range after third-party delays. Confirmed
2. Track whether planned capital spending rises to about $27 billion and whether Nebius reaches more than $7 billion in annualized revenue by February 2027. Confirmed
3. Check whether pricing gains and customer prepayments on longer agreements continue to offset infrastructure costs; weaker coverage could increase pressure on cash available for growth. Analyst inference

Evidence

• gurufocus.com