Jefferies raises PT for Australia's Megaport after FY guidance upgrade, shares rise

Megaport

12/07/2023 02:28

(Adds share moves)
    ** Shares of cloud services provider Megaport  MP1.AX 
extend gains to rise as much as 7.8% to A$9.690 - their highest
since Aug. 1, 2022
    ** Analysts at Jefferies raise price target on MP1 to A$9.55
from A$7.40 for after co raised FY23 normalised EBITDA forecast
to A$19-A$21 mln ($12.7-$14 mln) from A$16-A$18 mln
    ** Brokerage forecasts revenue growth of 41% in FY23 and 23%
in FY24
    ** Separately, Jefferies notes that NZ's Infratil  IFT.NZ 
reached agreement to buy 80% stake in Console Connect from Hong
Kong's HKT
        ** Jefferies says Console Connect is smaller than MP1 in
terms of revenue but has higher number of cloud zones and data
centre presence 
  
    ** Brokerage says Console Connect could be a more formidable
competitor to MP1
    ** Seven of 13 analysts rate the stock "buy" and five "hold"
and one "sell"; their median PT is A$8.30 - Refinitiv Data
    ** As of last close, MP1 up 42.5% YTD
   


($1 = 1.4999 Australian dollars)

 (Reporting by John Biju and Himanshi Akhand in Bengaluru)
 ((John.Biju@thomsonreuters.com;))