Australia's Megaport surges as trading resumes; Citi hikes target price

Megaport

05/06/2026 01:27

Updates
** Shares of Australian IT firm Megaport MP1.AX rise as much as 27.4% to A$21.160, hitting their highest level since December 3, 2021, as trading resumed after a trading halt
** Stock heads for its best day since May 14 if current gains hold
** Citi raises its target price by 41% to A$22.10, citing material earnings changes; reiterates "buy" call  
** Latitude's contract win rate over the past two months has been "exceptional", driven by company leveraging its balance sheet, data centre footprint, and network to secure sizeable deals - brokerage
** MP1 acquired cloud platform Latitude.sh in 2025
** "While medium-term earnings risks are rising, large contracts offer attractive economics, with payback periods under 2-1/2 years" - Citi
** Brokerage raises its FY27 EBITDA estimate by 73% to A$255 million ($181.92 million), factoring in the Latitude acquisition contract expected to ramp through Q2 of FY27
** Stock was on trading halt since June 2; Co said on Wednesday it has secured four AI infrastructure contracts worth A$458.9 million 
** Shares up 41.3% YTD
     
($1 = 1.4017 Australian dollars)

 (Reporting by Anjali Singh & Rajasik Mukherjee in Bengaluru)
 ((anjali.singh2@thomsonreuters.com;))