** Shares of connectivity solutions provider Megaport MP1.AX rise 3.7% to A$7.8, their highest levels since Dec 19, 2024
** Citi says co's expansion catalysts, including new data centres $(DC)$, product launches, and FX tailwinds, are poised to counterbalance any possible adverse effects of price cuts
** Brokerage sees FY26e growth potentially surpassing forecasts due to co's strategies like offering year-long free terms to capture clientele, surge in demand for larger DC networking products and inputs anticipated from new DC sites and partnerships
** Says that despite a rise in workforce and subsequent cost inflation, Citi expects unchanged EBITDA margins for FY26e, crediting it to amplified investment in product development to tackle the net revenue retention deceleration
** Maintains "buy" rating, with a target price of A$9/share
** Stock rose as much as 4.3% earlier in the day, set for its three consecutive sessions of gains
** Seven of 14 analysts rate the stock "buy" or higher, with the other seven as "hold"; their median PT is A$9.73 – LSEG data
** Stock dropped ~20% in value in 2024
($1 = 1.6119 Australian dollars)
(Reporting by Kumar Tanishk in Bengaluru)
((Tanishk.Kumar@thomsonreuters.com;))
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