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

On Thursday, Canaccord Genuity initiated coverage on Northern Data (NB2), stating that the company is well-positioned to benefit from the growing demand in artificial intelligence (AI) and high-performance computing (HPC). The brokerage set a buy rating and a price target of €60 ($62), with the stock trading 2.4% higher at €45.65 at the time of publication.

In their analysis, Canaccord’s team, led by Kingsley Crane, described Northern Data as playing a pivotal role in the emerging AI market, noting that the company’s infrastructure, particularly its Taiga Cloud business, is primed for success as AI adoption accelerates. They likened Northern Data’s role to “building the infrastructure for the AI boom.”

The report also mentioned that Northern Data, which is partially owned by stablecoin issuer Tether with a 52% stake, is exploring the sale of its Peak Mining business. A successful divestiture would provide the company with the capital necessary to focus on expanding its GPU and data-center capabilities, positioning it for long-term growth beyond 2025.

Although the stock has surged 74% in the past three months, Canaccord believes that Northern Data still has significant upside potential, with strong investor interest continuing to drive demand for the shares.