NextDC's 1H result revealed revenue in line with Morgans forecast and a 7% beat for earnings (EBITDA), largely due to timing changes for additional growth-related operating costs.

For the broker, the symbiotic relationship between hyperscale and enterprise (cloud and corporate colocation) is the key attraction of NextDC.

While cloud/hyperscale represented the majority of the record 149MW's contracted (a 77% rise) in the 1H, the company also sold a record 4MW of enterprise capacity in the 2Q of FY23, explains the analyst.

The broker's forecasts for the next three years are largely unchanged, but medium-term estimates rise due to increased confidence in the outlook.

The target is increased to $20.00 from $14.50. Add. It's felt the post-result share price rise related to general excitement around the significant upcoming wave of digital demand.

Sector: Software & Services.

Target price is $20.00.Current Price is $17.15. Difference: $2.85 - (brackets indicate current price is over target). If NXT meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2024 Acquisdata Pty Ltd., source FN Arena