Brokerages flag near-term cost pressures for Australia's Megaport

Megaport

22/08/2025 01:18

** Analysts at Jefferies and Morningstar expect near-term cost pressures for Australia's Megaport MP1.AX

** The IT services provider reported a 16% increase in FY25 revenue to A$227.1 million ($145.73 million)

** Jefferies lowers its FY26 EBITDA forecast by 29% to A$50.1 million, pricing in expectations of continued growth spending

** Co unlikely to meet the rule of 40 - a metric assessing the balance between revenue and profitability - in the near term, Jefferies adds

** Shares of co slip 0.6% to A$14.21

** However, Jefferies ups PT to A$15 from A$13.2, based on upgraded long-term assumptions, and improved FY25 revenue growth

** Morningstar flags that increase in spending next year will not see an immediate commensurate increase in revenue

($1 = 1.5584 Australian dollars)

 (Reporting by Shruti Agarwal in Bengaluru)

 ((Shruti.Agarwal@thomsonreuters.com))