Megaport's business not broken, products still in demand, Jefferies says

Megaport

16/10/2024 20:13

** Jefferies says stock downside will now be limited for
Megaport  MP1.AX  after the Australian company lost 37% since
dismal FY25 forecast update in August
    ** Brokerage says MPI's business is not broken and its
products are still in demand
    ** Says generative artificial intelligence will be another
tailwind for the tech-focussed firm
    ** We believe there is no structural issue with MP1's
products and the business can grow by mid-teens in the medium
term, Jefferies says
    ** Since MPI stock has dragged, brokerage lowers its PT to
A$11.1 from A$13.4; cuts earnings estimates by 13%-15% over
FY25-27
    ** Stock has fallen 19.1% this year, as of last close

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))