Megaports New Bulls See Transformation Raising Rewards
Dow Jones
Aug 21
0249 GMT - Megaport's ongoing transformation increases both risks and rewards for investors, according to its new bulls at Morgan Stanley. Raising their recommendation on the stock to overweight from equal-weight, MS analysts tell clients that the Australia-listed company's expansion from its core network-as-a-service capabilities means it is now a capital-intensive artificial-intelligence infrastructure and computing provider. They warn that this brings risks around execution, competition, chip cycles and funding. Fortunately, it also increases Megaport's exposure to digital-infrastructure demand that MS believes will significantly outstrip supply. MS doubles its target price on the stock to 25.00 Australian dollars. Shares are down 4.0% at A$18.54.
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