Australia's Megaport tanks; UBS waits to see growth in sales

Megaport

22/11/2024 02:13

** Shares of Australia's Megaport  MP1.AX  fall as much as
13.9% to A$7.2
    ** Stock set for its biggest intraday loss since Aug. 22 and
hit its lowest since early Nov.
    ** Analysts at UBS say the technology major's FY25 outlook
remains in-line with estimates but FY26 guidance looks to be a
downgrade compared to market expectations
    ** Brokerage says market would want to see a acceleration in
sales growth, given co's ongoing investment in headcount
    ** Adds MP1's ongoing investment into headcounts could
impact margin expansion and EBITDA in FY26
    ** Brokerage has a PT of A$10.15 and retains "neutral"
rating on stock
    ** Stock has fallen 9.1% this year as of last close

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))