NEBIUS (NBIS) stock is soaring 7.73% in intraday trading on Monday, driven by a combination of positive analyst actions and the completion of a significant debt financing round that bolsters the company's financial position.
The surge follows an upgrade from Freedom Capital Markets, where analyst Paul Meeks raised his rating on the stock to Buy from Hold and increased the price target to $200 from $159. This bullish call reflects improved confidence in the AI cloud company's prospects. Concurrently, Northland Capital Markets maintained its Outperform rating on the stock, adding to the positive sentiment.
Further fueling the rally is the company's recent announcement of completing a $775 million inaugural senior secured debt facility. The financing, arranged by MUFG and reportedly oversubscribed, is collateralized by the company's deployed GPU computing infrastructure and long-term contracted cash flows from highly rated clients. Management stated the proceeds will fully cover existing GPU capital expenditures, with remaining funds allocated toward expanding compute capacity to support the delivery of its full-stack AI cloud platform services.