Jefferies trims PT on Australia's NextDC on elevated debt costs

NEXTDC

07/04/2026 20:38

** Jefferies cuts PT for data centre operator NextDC NXT.AX to A$16.60 from A$18.70, citing higher cost of debt over longer term

** NXT on Tuesday launched A$1 billion ($694.50 million)wholesale offer of subordinated hybrid securities with 100-year maturity

** Brokerage notes the hybrids will provide NXT with interim funding until credit markets return to normal levels, following increased borrowing costs after the U.S.-Iran conflict

** The issuance also removes pressure to raise equity, at least in the short term, as NXT has ample headroom in its covenant limits, Jefferies adds

        ** "The issuance of hybrids shows that NXT has flexible funding options for its data centre capex" - Jefferies

** Including the hybrids issuance NXT will have pro

forma liquidity of A$5.2 billion as at 31 Dec-25, providing runway for next two years, says Jefferies

** All 13 analysts rate the stock "buy" or higher; their median PT is A$20.65 – LSEG data

** YTD, stock up 0.6% as of last close

($1 = 1.4399 Australian dollars)

 (Reporting by Sherin Sunny in Bengaluru)

 ((Sherin.Sunny@thomsonreuters.com))