Morningstar upbeat on Australia's Megaport's long-term potential

Megaport

30/01/2024 20:20

** Analysts at Morningstar consider Megaport's  MP1.AX 
shares as materially undervalued and not reflective of its
long-term revenue and margin potential
    ** Brokerage maintains fair value estimate of A$15.00/shr
    ** Morningstar sees stock price jump as continuing a trend
of volatility and possibly enjoying a lift with the broader
technology sector rally during the day
    ** We support Megaport's decision to prioritize revenue
growth over margin expansion despite increasing investor focus
on profitability - Morningstar
    ** Brokerage sees the IT services firm as an early mover in
a "nascent" industry
    ** 10 of 13 analysts rate stock "buy" or higher and 3 rate
"hold"; their median PT is A$13.15 - LSEG data
        ** Stock up 35.7% YTD, as of last close

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((shivangi.lahiri@thomsonreuters.com))