Northern Data Receives Buy Rating with €60 Price Target from Canaccord
Infrastructure providers, such as Northern Data (NB2), are positioned to benefit from the increasing demand from artificial intelligence (AI) and high-performance computing (HPC) firms, according to a report by broker Canaccord Genuity.
Canaccord initiated coverage with a buy rating and a price target of 60 euros ($62). At publication time, the stock was trading 2.4% higher at 45.65 euros.
Analysts, led by Kingsley Crane, noted that companies like Northern Data are "building the railroad for the AI gold rush." The company's Taiga Cloud business is at the forefront of what could be a generational opportunity.
Northern Data, which is 52% owned by stablecoin issuer Tether, is exploring options to sell its Peak Mining business. This potential divestiture would provide cash for investments in GPUs and data-center facilities, significantly enhancing the company's growth prospects beyond FY25.
Despite a 74% rally in the last three months, Canaccord indicated that the shares still offer potential upside, noting strong investor appetite.
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