Citi upgrades target price for Australia's Megaport

Megaport

05/06/2026 24:33

** Citi reiterates "buy" call on Australian IT firm Megaport MP1.AX and upgrades its target price to A$22.10, citing material earnings changes
** 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 2.5 years" - Citi
** Brokerage raises its FY27 EBITDA estimate by 73% to A$255 million ($181.92 million), factoring in the large contract expected to ramp through Q2 of FY27
** Ten of 11 analysts rate the stock "buy" or higher, and one "hold"; median price target is A$18.59 - data compiled by LSEG
** Shares up 41.3% YTD
     
($1 = 1.4017 Australian dollars)

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