BUZZ-Australia's Megaport tanks; UBS waits to see growth in sales

Reuters
22 Nov 2024
BUZZ-Australia's Megaport tanks; UBS waits to see growth in sales

** Shares of Australia's Megaport MP1.AX fall as much as 13.9% to A$7.2

** Stock set for its biggest intraday loss since Aug. 22 and hit its lowest since early Nov.

** Analysts at UBS say the technology major's FY25 outlook remains in-line with estimates but FY26 guidance looks to be a downgrade compared to market expectations

** Brokerage says market would want to see a acceleration in sales growth, given co's ongoing investment in headcount

** Adds MP1's ongoing investment into headcounts could impact margin expansion and EBITDA in FY26

** Brokerage has a PT of A$10.15 and retains "neutral" rating on stock

** Stock has fallen 9.1% this year as of last close

(Reporting by Rishav Chatterjee in Bengaluru)

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

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