Nebius Group shares climb after BTG Pactual initiates coverage

Nebius Group shares rose 5.2% in morning trading Tuesday after BTG Pactual initiated coverage with a Neutral rating, helping the stock recover from Monday's decline triggered by a Sell rating from Rothschild Redburn.

Rothschild Redburn had set an $84 price target on the stock, pointing to credit market warning signals and what the firm described as cyclically inflated valuations in the AI cloud sector.

The company recently announced price increases of approximately 20% across major Nvidia and AMD compute instances, set to take effect October 1. The move represents the second price hike this year for Nebius.

Market participants are viewing the pricing adjustments as a sign of strong demand and pricing power in the GPU cloud market. Analysts following the neocloud sector have reported that Nebius has customer demand visibility extending beyond 24 months.

A research note published Tuesday pointed to the company's Nvidia backing and revenue growth trajectory as factors supporting a positive long-term outlook.

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