BWS Financial increased its price target on Nebius Group (NASDAQ: NBIS) to $200 from $130, while maintaining a Buy rating, following the announcement of a major new contract with Meta Platforms (NASDAQ: META).
The firm said Nebius secured one of the largest contracts ever awarded by Meta, less than six months after the initial agreement between the companies. The new contract is expected to commence in early 2027 and is valued at $12 billion, with potential expansion of up to an additional $15 billion.
This significantly exceeds the earlier agreement, which was valued at approximately $3 billion and is now viewed as a preliminary engagement.
Since entering into its first agreement with Meta, Nebius has expanded its infrastructure capacity to 170 megawatts of active capacity by the end of 2025 and approximately 2 gigawatts of contracted power.
BWS said the new contract strengthens the company’s growth outlook and supports its ambition to reach annualized recurring revenue of $7 billion to $9 billion by the end of 2026.
The firm believes Nebius is now well positioned to execute on its long-term expansion strategy.
