Canaccord Genuity Initiates Buy Coverage on Northern Data, Sets €60 Target
Canaccord Genuity initiated coverage on Northern Data (NB2) with a buy rating and a target price of €60 ($62), believing the company is strategically positioned to benefit from the rapid expansion of artificial intelligence (AI) and high-performance computing (HPC). At the time of the report, the stock was up 2.4%, trading at €45.65.
The analysts, led by Kingsley Crane, noted that Northern Data is in a prime position to play a pivotal role in the AI and HPC sectors, with its infrastructure enabling key technological advancements. They specifically highlighted the company’s Taiga Cloud business, which they see as well-placed to capitalize on what they view as a transformative wave in the industry.
Canaccord also pointed out that Northern Data, with 52% of its shares owned by stablecoin issuer Tether, is contemplating the sale of its Peak Mining business. Such a sale would provide much-needed capital to further expand its GPU and data-center operations, creating a solid growth trajectory for the company through 2025 and beyond.
Although Northern Data has already seen a 74% rise in its stock price over the past three months, Canaccord remains bullish on the company, asserting that there is significant upside potential with continued investor interest in the stock.
