Australia's NextDC rises; Jefferies maintains 'buy', says funding secured through FY28

NEXTDC

16/10/2026 02:14

Updates
** Shares of Australia's NextDC NXT.AX rise as much as 4.1% to A$9.220, posting their biggest intraday pct gain since September 22
** Jefferies says data centre operator has sufficient liquidity to fund development through FY28
** Says NextDC has about A$10 billion ($6.92 billion) of liquidity against its FY27-FY28 capex forecast of A$8.2 bln following recent convertible bond raise
** Says rising interest costs remain manageable, with EBITDA expected to cover interest payments even if debt costs rise by 100 to 200 basis points
** Brokerage says NextDC's current share price largely reflects value of its property assets, with little value attributed to operating business or future development pipeline
** Jefferies maintains "buy" rating with an unchanged A$17 price target
** NextDC stock down 3.4% so far this week, heading for worst weekly performance in nearly two months
** YTD, stock down 45.7%, including the session's moves

($1 = 1.4455 Australian dollars)

 (Reporting by Paridhi Minda in Bengaluru)
 ((Paridhi.minda@thomsonreuters.com))