NextDC shares lift on contract wins
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More news: Shares in NextDC rose 2.6% to $16.08 after the data centre operator said it secured a spate of recent contract wins, helping it lift contracted utilisation rates, as well as its order book. The company said its forward order book now stands at a record level of 86.6 megawatts, while contracted utilisation has increased by 16% since December.
E&P Capital analyst Paul Mason said the contract announcement likely backfills expectations that were already in the market, and he predicted the stock reaction is likely to be positive but not super significant.
The brokerage, which holds a 'positive' rating on the stock, has a $21.70 a share price target.
NextDC lifts order book after contract wins
The news: Data centre operator NextDC says it has secured a spate of recent contract wins, helping it lift contracted utilisation and its order book.
The numbers: As a result of these customer contract wins, the forward order book now stands at a record level of 86.6 megawatts (MW), the company said. Contracted utilisation has increased by 23.6 MW or 16% since December to 172.6 MW. The NSW/ACT data centre region benefited the most from the increased utilisation and is now at 20% of total planned capacity.
The context: NextDC said revenue recognition for the majority of the new customer contract wins is expected to commence progressively during FY27, following completion and commissioning of additional data halls over time, and to contribute at full run rate from FY28 onwards.
The data centre operator raised $1.3 billion in April to speed up the development and fit out of assets in Sydney and Melbourne amid unprecedented growth in customer demand.
The source: ASX
