Following Megaport's 1H results, Morgans makes immaterial changes to its forecasts as most details had been pre-reported via a recent quarterly update.

The broker feels recent sales weakness is the result of macroeconomic conditions and some company-specific matters, and doesn't indicate any broader problems.

In the period before new sales rebound, the analysts believes existing customers will continue to purchase more of their telecommunications needs off the company.

Morgans feels the path to free cash positivity within the next 18 months has been substantially de-risked.

The Add rating and $8.25 target are maintained.

Sector: Software & Services.

Target price is $8.25.Current Price is $5.89. Difference: $2.36 - (brackets indicate current price is over target). If MP1 meets the Morgans target it will return approximately 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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