Canaccord Genuity Initiates Coverage of Northern Data with Buy Rating and €60 Price Target
In a new report released Thursday, Canaccord Genuity initiated coverage of Northern Data (NB2), highlighting the company’s strong position to benefit from the increasing demand for artificial intelligence (AI) and high-performance computing (HPC) infrastructure. The brokerage assigned a buy rating and a price target of €60 ($62) for the stock, which was up 2.4% at €45.65 at the time of publication.
Canaccord analysts, led by Kingsley Crane, stated that companies like Northern Data are “building the infrastructure for the AI boom,” emphasizing that Northern Data’s Taiga Cloud business is leading the charge in what they see as a generational opportunity.
Additionally, the firm pointed out that Northern Data, which is 52% owned by stablecoin issuer Tether, is considering the sale of its Peak Mining division. This potential divestiture could provide the company with additional capital to invest in high-performance GPUs and data centers, expanding its growth prospects well beyond fiscal year 2025.
Despite a 74% surge in the company’s stock over the last three months, Canaccord noted that Northern Data’s shares still hold considerable upside, signaling strong investor interest.
