Megaport Ltd
MP1: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$78.20 | Fbpr | Wbzszzpcq |
Megaport Earnings: Shares Jump on Reaccelerating Revenue Growth
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.