Northern Data shares rise as CG Capital Markets initiates ‘buy’ coverage on shares of By Investing.com
Investing.com — Shares of Northern Data AG (ETR:) rose over 2% on Thursday after CG Capital Markets initiated coverage on the stock with a “buy” rating, citing growth potential in AI-driven computing infrastructure and data center operations.
Analysts at CG Capital Markets set a price target of €60, reflecting optimism about Northern Data’s ability to capitalize on growing demand for high-performance computing and generative AI services.
The memo marked Northern Data’s rapid transformation from its roots in mining to its current focus on AI infrastructure, positioning the company as a key player in Europe’s growing AI ecosystem.
Taiga Cloud’s brokerage division in particular is expected to drive significant revenue growth, with projections of nearly €400-440 million in 2025, accounting for more than 75% of the group’s total revenue.
This growth is supported by the deployment of advanced NVIDIA (NASDAQ: ) GPUs and a focus on energy-efficient, scalable infrastructure.
Analysts also noted that Northern Data’s potential spin-off of its Peak division could further streamline operations and provide additional capital to expand its AI-focused data center footprint.
This change aligns with the company’s broader goals to meet increasing demand for AI computing capacity while maintaining a competitive edge in energy efficiency and sustainability.
Despite the recent rise in the share price, CG Capital Markets believes the stock remains undervalued, citing the current enterprise value-to-sales ratio that leaves room for further appreciation as utilization rates and operational efficiency improve in the coming quarters.
