Piper Sandler Initiates Nebius Coverage With Neutral Rating

NBIS Piper Sandler initiated coverage of Nebius with a Neutral rating and $224 price target.

Piper has a favorable view of the public neocloud industry.

The AI infrastructure buildout is in the early stages, and CoreWeave and Nebius are positioned to materially benefit over the medium term, the analyst tells investors in a research note.

The firm believes CoreWeave's engineering team provides differentiation that can reduce costs.

Piper sees a better risk/reward on CoreWeave shares relative to Nebius given the risk around the latter's Vineland data center meeting on August 5.