Morningstar backs NEXTDC's FY27 performance on strong data center pipeline

NEXTDC

28/09/2026 22:37

** Morningstar says Australia's NEXTDC Ltd NXT.AX is gearing up for a strong FY27 with revenue estimated to jump 55% and underlying EBITDA expected to grow 60%
** Investment research firm says NXT is facing a "wall of demand" for data center capacity driven by structural megatrends in artificial intelligence, cloud computing and the Internet of Things (IoT)
** Says co is well-positioned to capitalize on global demand given its existing high-quality assets among others
** Maintains fair value estimate for NEXTDC at A$15.60/share on capex assumptions
** Increases FY27 capex forecasts of co in line with co's guidance at A$5.5 billion ($3.86 billion), to be offset by improved revenue forecast
** Avg rating of 13 analysts suggest "buy" or higher; their median PT is A$19.90, according to data compiled by LSEG
** YTD, NXT down 11.5%, as of stock's last close
     
($1 = 1.4245 Australian dollars)

(Reporting by Aamir Sheik Khalid in Bengaluru)
((Aamir.SheikKhalid@thomsonreuters.com))