Megaport Limited: Mega turnaround!
About the author:
- Author name:
- By Nick Harris
- Job title:
- Senior Analyst
- Date posted:
- 03 May 2023, 8:00 AM
- Sectors Covered:
- Telecommunications, Technology
- In our view, Megaport Limited's (ASX:MP1) Q3 result was irrelevant as management’s guidance for FY23 and FY24 was well ahead of consensus expectations. The Q3 result itself was, as expected, weak. The big surprise was FY23 and FY24 Underlying EBITDA guidance, which was 45% and 89% respectively, above consensus. Revenue guidance was not provided but the bulk of the beat came from resetting the cost base.
- We don’t expect revenue growth to accelerate for ~6 months and despite this we still think MP1 will be FCF+ in FY24. Achievement of guidance should be within management’s control as it’s primarily based on lower operating costs.
- We retain our Add rating and increase our target price to (login to view).
Find out more
Download full research note
If you would like more information, please contact your adviser or nearest Morgans office.
Request a call
Find local branch
Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.
Print this page