YB new stock pitches (Tue, Nov 26)

Nebius Group (NBIS), led by ex-Yandex founder Arkady Volozh, is a leading AI infrastructure provider with $2.3 billion in cash and no debt. The company operates one of Europe's largest GPU cloud platforms, currently with 20,000 GPUs and plans to expand to 95,000. Nebius aims to achieve $1 billion in annual recurring revenue by 2025, driven by its core AI infrastructure business and supported by subsidiaries Toloka AI, Avride, and TripleTen. Q3 2024 revenue doubled quarter-over-quarter, with projections for at least fivefold growth in 2025. The company is investing $1 billion in AI infrastructure, including new data centers in Finland, Paris, and Kansas City. Using a conservative valuation of $155,555 per GPU based on competitor CoreWeave's metrics, Nebius AI alone could be valued at approximately $3.1 billion. Key catalysts include CoreWeave's potential IPO and increased analyst coverage. Risks involve execution challenges and competition in the rapidly growing AI market.

Read the full article here. Read time: 6 min

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Lagardere SA (MMB.PA) is a publishing and travel retail company trading at 10-11x earnings with a 3.2% dividend yield. The publishing business is valued at 10x EBITDA (~€4B), while travel retail is worth €3.5B. A spin-off of Vendi's stake in Lagardere is expected in December, creating a more liquid trading vehicle. The company's intrinsic value is growing organically and through M&A, with publishing benefiting from the audiobook trend and travel retail consolidating. Qatar Investment Authority and LVMH own significant stakes, limiting downside risk. Management sees potential for margin expansion in both segments. The stock currently trades at €21, with a fair value estimate of €36-38 per share. Key risks include the controlled nature of the company and potential conflicts between management and controlling shareholders. The spin-off may create opportunities for value realization, though the timeline and exact outcome remain uncertain.

Read the full article here. Read time: 35 min

NowVertical Group Inc. (NOW.V) is a data analytics company undergoing a turnaround, trading at CAD 0.35/share with a market cap of USD 22.1 million and an enterprise value of USD 36.5 million. The new CEO has implemented changes including debt reduction, cost cuts, and a one-brand strategy. Q3 2023 showed profitability with USD 1.968 million adjusted EBITDA, annualizing to USD 7.872 million, resulting in a 4.6x EV/EBITDA ratio. The company has over 250 clients, including major corporations like Nike and Adobe, and a strong presence in Latin America with growth potential in the UK and US markets. Cross-selling opportunities exist due to the new integrated structure. The company's focus on AI and data analytics positions it well in a growing market. Risks include the company's history of failed acquisitions and complex financials. The stock offers potential upside as the turnaround progresses and growth opportunities are realized.

Read the full article here. Read time: 11 min