Megaport's Latitude Guidance Looks Conservative to Bull

Dow Jones
Sep 08

2252 GMT - While currency exchange rates are a potential headwind to Megaport, Citi views the cloud connectivity provider's FY27 guidance as conservative. Megaport has guided to a A$305 million-A$405 million range for FY27 revenue from its Latitude.sh acquisition, Citi says. This wide range has ledinvestors to question whether strategic contracts are delayed. "We see the guidance as conservative especially when considering that closing FY26 annualized recurring revenue included A$14 million from the strategic contracts (which is ahead of schedule)," analyst Siraj Ahmed says. So, the guidance range is likely to be about providing flexibility for potential procurement or deployment delays, Citi says. It forecasts Latitude revenue of A$370 million. Citi retains a buy call on Megaport, and raises its price target by 11% to A$24.60/share. Megaport ended Monday at A$17.13.

 

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