Macquarie sees medium-term earnings outlook improving for Aussie tech sector

Audinate

05/03/2024 23:15

** Analysts at Macquarie note profitable growth and better
unit economics as the key themes in Australia's tech stocks
 .AXIJ  in first half of 2024
    ** "(Tech) sector free cash flow margins are expanding, with
covered company revenues resilient through 1H FY24" - Macquarie
    ** Brokerage says Megaport  MP1.AX  is key pick with its
exposure to artificial intelligence (AI) and solid new
enterprise sales strategy
    ** Says Audinate  AD8.AX  delivered strong revenue for
half-year while co's guidance implies a conservative view on
macro
    ** Sees FY24 to be a record year for contracted capacity for
NEXTDC  NXT.AX  and says AI opportunity large and near term
    ** Shares of MP1 and NXT have risen 59.5% and 22.5%
respectively this year, as of last close 

 (Reporting by Sneha Kumar in Bengaluru)
 ((Sneha.Kumar@thomsonreuters.com;))