Megaport's New Contracts Support Earnings Visibility
Dow Jones
Yesterday
0427 GMT - Megaport's new contracts further support the view at Jefferies that the compute-as-a-service provider is one of Australia's highest-leverage AI-infrastructure exposures. Analyst Roger Samuel lists improving contract economics, reduced funding risks, and growing visibility over future earnings among the attractions at Megaport, which he continues to rate as a buy. Samuel tells clients in a note that the company's core network business is also doing well, with annual recurring revenue up by 4.5% in the two months through Aug. 31 and net retention rates at their highest since 2023. Jefferies lifts its target price by 5.8% to 27.50 Australian dollars. Shares are down 1.2% at A$20.375.
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