Jefferies says Megaport cashing in on AI boom; ups price target, earnings forecast

Megaport

03/06/2026 21:52

** Jefferies says Australia's Megaport MP1.AX is capitalising on surging demand for AI workloads
** On Wednesday, co secured four new AI infrastructure contracts worth A$458.9 million ($327.01 million), while also raising A$827.3 million to build inference cloud
** Brokerage says MP1's more than 1,100 data centres in 31 countries give it a competitive edge over others
** Jefferies expects co's core network division to benefit from rise in AI inference
** Raises EBITDA forecast by 40.6% for 2027 and 54.9% for 2028
** Hikes price target to A$19 per share from A$18.40 apiece, rates stock "buy"
** Stock up over 36% this year

($1 = 1.4033 Australian dollars)

 (Reporting by Rajasik Mukherjee in Bengaluru)
 ((Rajasik.Mukherjee@thomsonreuters.com))