Jefferies upgrades FY24, FY25 EBITDA forecasts for Australia's Megaport

Megaport

28/07/2023 03:33

(Adds Macquarie comments, share move)
    ** Jefferies upgrades its FY24 and FY25 EBITDA forecasts for
Australian cloud services provider Megaport  MP1.AX , raises
price target and rating 
    ** Jefferies lifts FY24 EBITDA forecast by 5% and FY25
EBITDA forecast by 8% for MP1
    ** Brokerage hikes price target for MP1 to A$12.55 from
A$9.55, upgrades rating to "buy" from "hold" 
    ** Says MP1 could comfortably print positive free cash flow
(FCF) in FY24 with some buffer for "strategic initiatives",
which would deliver more growth
    ** Macquarie says although FCF turned positive in Q4, co's
reinvestment plans, which include expenditure on new staff will
impact core profit and FCF after FY24 
        ** Brokerage maintains "neutral" rating, cuts FY24
earnings estimate by 1%
    ** Megaport shares down as much as 3.5% to A$10.25
    ** Stock up 68.3% YTD, as of last close 

    

 (Reporting by Echha Jain and Poonam Behura in Bengaluru)
 ((Echha.jain@thomsonreuters.com))