MP1: MP1 - Updating Price Target to Incorporate Expansion in Compute/Storage

研报英文原文证据摘录

MP1: MP1 - Updating Price Target to Incorporate Expansion in Compute/Storage

Megaport EBITDA: Company reported EBITDA (excl. restructuring charges) for FY23/FY24 was

signed eight contracted deals totaling A$747.8M in TCV, A$301.3M in pro A$25.2m/$57.1m.All values in AUD unless otherwise noted.

forma ARR, and will require incremental capex of approximately A$526.7M Priced as of prior trading day's market close, EST (unless otherwise noted).

primarily for NVIDIA GPU, compute, network, and storage hardware, with

payback periods of approximately 24–27 months.

Comp selection rationale. Inside the report we highlight the relevant

comparables for Megaport's business across neo-cloud GPU infrastructure

providers (CoreWeave/Nebius) and hosting/bare-metal platforms (OVH,

Digital Ocean, Akamai, Rackspace, and Cloudflare), to establish an

appropriate EV/EBIT valuation range. Both groups carry capital intensity

from GPU fleets, server hardware, and network equipment, with D&A as a

percentage of revenue varying widely across the comp set. EV/EBIT is our

preferred metric because it measures returns after the cost of deploying

physical infrastructure and normalizes for differences in asset ownership

across this peer group. Lumen and Cogent were identified as network

infrastructure comparables but are excluded from the primary valuation

range. Both trade at significantly lower EV/EBITDA and significantly higher

EV/EBIT multiples than MP1, reflecting legacy fixed-line network assets and

high debt loads.

Valuation. We use CY2028E as the reference year because the recent

AI infrastructure contracts are expected to reach full run-rate ARR by

end of June 2027/December 2027, with 100% revenue flow-through from

the contracted deals and GPU cloud platform in CY2028. At the median