Australia's Megaport extends losses as Citi cuts PT on forex headwinds

Megaport

05/01/2024 02:24

** Shares of Australian cloud network service provider
Megaport Ltd  MP1.AX  down 1.6% at A$8.670
    ** Citi cuts price target on MP1 stock to A$12.05 from
A$12.25, retains "buy" rating
    ** Shares set for a fourth straight day of losses, if trend
holds 
    ** Stock fell as much as 1.9% earlier in the day to reach
A$8.640, its lowest level since July 11 
    ** Set to lose nearly 6% over the week, its worst since
mid-December 2023
    ** Citi says foreign exchange headwinds to impact MP1's
monthly recurring revenue (MRR) in 2Q24; believes MRR growth
will pick up in 4Q24
    ** Brokerage adds it expects gross margins to continue to
improve which reflects MP1 "continuing to shut down loss-making
locations"
    ** Citi slightly trims its FY24-26 EBITDA forecasts to
reflect strong Australian dollar view
    ** Ten of 13 analysts rate MP1 "buy" or higher, and three
rate it "hold"; their median PT is A$12.63 – LSEG data
    ** MP1 soared 45.8% in 2023, as of last close, vs a 7.8%
gain in the ASX 200 benchmark index  .AXJO 
    

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))