Megaport Ltd

MP1: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$68.80	Brw	Vrmjlthhx

Megaport Earnings: Shares Jump on Reaccelerating Revenue Growth

Roy Van Keulen

Jan 30, 2024

We maintain our AUD 15 per share fair value estimate for no-moat Megaport following its fiscal 2024 second-quarter sales update. Megaport’s shares jumped around 30% on the update. Although the update was strong, we also see the stock price jump as continuing a trend of volatility coinciding with Megaport’s quarterly updates and possibly enjoying a lift with the broader technology sector rally during the day. At current prices, we continue to view Megaport’s shares as materially undervalued and not reflective of its long-term revenue and margin potential.

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