Tech company Megaport (MP1) helps businesses add capacity for increased website traffic that might be of a temporary nature, such as the Victorian Racing Club during the Melbourne Cup period.
“We have an ADD recommendation for Megaport (MP1) and $12.50 discounted cash flow (DCF) derived target price on MP1,” Raymond said.
“We rate management and the outlook highly and view expectations for revenue growth in financial year 2025 as conservative.
“We believe the new management team has mostly reset the business and positioned it for accelerating sales growth and profitability.
“We expect sales growth and earnings to accelerate over time, and that this will lead to a share price re-rating,” Raymond said.
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