With full details of Megaport’s fourth quarter result now released, Morgans updates forecasts and increases its target price to $16.61 from $15.83. The first 21 sales of Megaport’s Virtual Edge (MVE) were made during the quarter.
The analyst forecasts MVE sales (a higher revenue per customer product) will contribute around 40% of FY22 revenue growth.
As anticipated by the broker, overall sales accelerated materially. It’s expected annual recurring revenue (ARR) will exceed $100m before the end of 2021.
Sector: Software & Services.
Target price is $16.61.Current Price is $16.00. Difference: $0.61 – (brackets indicate current price is over target). If MP1 meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
