Morgans makes immaterial forecast changes for Megaport as key metrics were disclosed prior to the first half result. The broker notes foreign exchange continues to weigh by slowing revenue on translation and causing an around -$17m loss.
Key points for the analyst included, Megaport Virtual Edge progress and closing the gap to earnings (EBITDA) breakeven. With North America (NAM) now EBITDA positive, all three regions are EBITDA positive at a segmental level and before centralised costs.
Hold and $13.27 target are unchanged.
Sector: Software & Services.
Target price is $13.27.Current Price is $14.20. Difference: ($0.93) – (brackets indicate current price is over target). If MP1 meets the Morgans target it will return approximately -7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
