Following 3Q results for Megaport, Morgans lowers its target price to $10.65 from $14.50 and cautions a lot depends on sales acceleration as investors await proof of scalability. That being said, the broker remains a long-term bull on the stock.
The results were dragged down by currency impacts, which halved revenue growth on translation back to Australian dollars. Also, time spent by direct sales people training channel partner sales teams on the Megaport Virtual Edge product weighed. Hold.
Sector: Software & Services.
Target price is $10.65.Current Price is $10.01. Difference: $0.64 – (brackets indicate current price is over target). If MP1 meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
