Next DC (NXT) is an Australian data centre operator, with 11 data centres around Australia, with facilities in Melbourne, Sydney, Brisbane, Perth and Canberra.
“NXT’s financial year 2023 result was in line with expectations, while financial year 2024 guidance was slightly below due to the substantial costs associated with bringing significant new capacity on line.
“Financial year 2024/25 will be scaleup years as NXT begins the next chapter of growth.
“After consistently telling investors there were some big contracts deep in negotiations, NXT has contracted 60MW of capacity in the last six months.
“This is more than they sold, cumulatively, in their first 10 years of existence.
“Orders of this magnitude take time to physically install so don’t materially move the dial on revenue until FY25.
“They underpin growth for the next 5+ years, and once fully ramped-up, offer earnings stability for the next 10+ years.
“Our analyst further upgraded NXT target from $13.99 to $14.50.,” Raymond said.
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