Northern Data Shares Rise as CG Capital Markets Initiates Coverage on ‘Buy’ of Investing.com Shares

Investing.com – Shares of Northern Data AG (ETR: ) climbed more than 2% on Thursday after CG Capital Markets initiated coverage on the stock with a “buy” rating, citing upside potential in the the company’s data center and artificial intelligence infrastructure. operations.

Analysts at CG Capital Markets have set a price target of €60, reflecting optimism about Northern Data’s ability to capitalize on growing demand for high-performance computing services and generative AI.

The note signaled Northern Data’s rapid transformation from its roots in mining to its current focus on AI infrastructure, which positions the company as a key player in Europe’s growing AI ecosystem.

The brokerage’s Taiga Cloud division, in particular, is expected to drive substantial revenue growth, with projections of almost €400-440 million in 2025, representing more than 75% of the group’s total revenue .

This growth is supported by the deployment of high-end NVIDIA (NASDAQ: ) GPUs and a focus on scalable, energy-efficient infrastructure.

Analysts also noted that Northern Data’s potential divestment 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 of meeting the growing demand for AI computing capabilities while maintaining a competitive edge in energy efficiency and sustainability.

Despite the recent gains in its share price, CG Capital Markets believes that the stock remains undervalued, citing a current company value to sales ratio that leaves room for further appreciation as interest rates utilization and operational efficiency will improve in the next quarters.