Megaport's March quarter update showed revenues up 19% quarter on quarter and 74% year on year on new customer increases and existing customer take-ups. The company is seeking to raise $65m in fresh capital at $9.50 to bolster the balance sheet for strategic opportunities.

The broker continues to see Megaport as well positioned at this time of work-from-home and cost cutting driving cloud usage. Despite dilution, the broker retains its $12.94 target, and Add rating.

Sector: Software & Services.

Target price is $12.94.Current Price is $10.48. Difference: $2.46 - (brackets indicate current price is over target). If MP1 meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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