Jefferies ups outlook, PT for Australia's NextDC on strong contract wins

NEXTDC

01/12/2025 18:32

** Jefferies raises price target for NextDC NXT.AX to A$19.80 from A$19.50

**  NXT on Monday announced new contract wins, increasing pro-forma contracted utilisation by 29%

** Jefferies expects further contract wins in 2H26 for the data centre operator as demand is still very strong

** New contracts will ramp over FY27-FY29, with NXT's Melbourne sites likely to be main beneficiary, given NXT has more capacity there than in Sydney, brokerage says

** Brokerage upgrades EBITDA forecast for NXT by 2% in FY27 and 4.6% in FY28, driven by new contracts

** Jefferies adds Monday's capex guidance raise is not a case of "capex blow-out", given NXT has been quite disciplined
 with capex in last 3 years

** All 14 analysts rate the stock "buy" or higher; their median PT is A$20 – LSEG data

** YTD, stock down around 9%

(Reporting by Sherin Sunny in Bengaluru)

((Sherin.Sunny@thomsonreuters.com))