Canaccord points out that Northern Data stands ready to benefit from the growing AI market.

Canaccord Genuity Begins Coverage of Northern Data with a Buy Rating and €60 Target

Canaccord Genuity initiated coverage of Northern Data (NB2) on Thursday, highlighting its strong potential to benefit from the rapidly growing demand in artificial intelligence (AI) and high-performance computing (HPC). The firm assigned a buy rating with a target price of €60 ($62), with Northern Data’s stock trading 2.4% higher at €45.65 at the time of the report.

According to analysts led by Kingsley Crane, Northern Data is well-positioned to take advantage of the AI boom, with its infrastructure playing a crucial role in supporting the growth of AI technologies. The company’s Taiga Cloud business, in particular, is expected to be at the forefront of what analysts view as a transformative opportunity in the sector.

Additionally, Canaccord highlighted that Northern Data, which is 52% owned by stablecoin issuer Tether, is considering selling its Peak Mining business. This potential divestiture would free up capital for investments in GPUs and data-center infrastructure, providing the company with substantial growth prospects beyond fiscal year 2025.

Despite the stock’s impressive 74% rally over the past three months, Canaccord believes that Northern Data still has significant upside potential, as investor demand for the company remains strong.

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