NXT – Morgans rates the stock as Add

Morgans assesses NextDC’s earnings are not materially exposed to higher spot energy prices, given energy rates are typically contracted annually.

The analyst also estimates around 80% of FY23 power costs will be passed on to wholesale customers, with the balance reviewed every year at the greater of CPI or 2.5%.

The Add rating is retained while the target falls to $13.01 from $14.64 as the broker utilises a higher risk free rate in its financial modelling.

Sector: Software & Services.


Target price is $13.01.Current Price is $10.09. Difference: $2.92 – (brackets indicate current price is over target). If NXT meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).



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