BUZZ-Megaport's business not broken, products still in demand, Jefferies says

Reuters
2024-10-17

** Jefferies says stock downside will now be limited for Megaport after the Australian company lost 37% since dismal FY25 forecast update in August

** Brokerage says MPI's business is not broken and its products are still in demand

** Says generative artificial intelligence will be another tailwind for the tech-focussed firm

** We believe there is no structural issue with MP1's products and the business can grow by mid-teens in the medium term, Jefferies says

** Since MPI stock has dragged, brokerage lowers its PT to A$11.1 from A$13.4; cuts earnings estimates by 13%-15% over FY25-27

** Stock has fallen 19.1% this year, as of last close

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com;))

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