Megaport shares boosted on Morgans' positive outlook
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The news: Megaport was the best performing stock across the ASX 200 index after Morgans reiterated its 'add' rating on the network as a service (NaaS) provider.
The numbers: Megaport shares were up 9.22% to $7.46 by 12:57pm AEDT but over the last 12 months has tumbled 18.2%.
Morgans reiterated its 'add' recommendation on the stock and its $12.50 price target.
The context: Morgans analysts said they "rate management and the outlook highly", viewing the company's expectations for revenue growth in FY25 as conservative.
What they said: "We believe the new management team has mostly reset the business and positioned it for accelerating sales growth and profitability," they noted.
"We expect sales growth and earnings to accelerate, over time, and that this will lead to a share price re-rating."
The source: Morgans research
