Australia's NEXTDC falls on data centre regulatory concerns; Citi remains cautious
BUZZ-Australia's NEXTDC falls on data centre regulatory concerns; Citi remains cautious ** Shares of Australia's NEXTDC NXT.AX down as much as 4.2% at A$11.040
** Citi says higher funding costs, including the impact of elevated interest rates are weighing on the technology company's share price
** Adds that increasing political and regulatory pushback for data-centre (DC) development in AU could delay approvals for co's expansion pipleine and future contract wins
** On Tuesday Australia's Victoria state government, where co operates its major DCs, announced the prohibition of construction of DC's in residentail zones
** Brokerage, however, flags strong underlying demand for DCs and says the AI-driven growth cycyle is still in its early stages
** Twelve of thirteen analysts rate the stock "buy" or higher and one rate "hold" ; their median PT is A$19.40 – LSEG data
** Stock down 8.7% YTD, including sessions' moves
(Reporting by Shravya Marakini in Bengaluru)
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