NEXTDC: You don’t need AI to see this demand wave
About the author:
- Author name:
- By Nick Harris
- Job title:
- Senior Analyst
- Date posted:
- 29 August 2023, 7:30 AM
- Sectors Covered:
- Telecommunications, Technology
- NEXTDC's (ASX:NXT) FY23 result was in line with expectations while FY24 guidance was slightly below due to the substantial costs associated with bringing significant new capacity on line. FY24 / 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 6 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.
- Add retained, price target lifted to (login to view).
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