Is MP1 Megaport Ltd (MP1) presenting value?

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Question asked 06/05/2022

Is MP1 Megaport Ltd (MP1) presenting value?

MP1 provided a weaker-than-expected quarterly update, mainly due to exchange headwind, and the change in sales channel. The medium/long term outlook of the company still remains intact. Bevan Slattery reduced his holding on MP1 by 1.93% from 7.04% to 5.11%. on 18th March. However, between 18th March to 22nd April, six other major shareholders have increased their holdings on MP1 by 10.97%. Given the support from other major shareholders, do you think that the earnings potential of MP1 Is more delayed rather than reduced and the sharemarket reaction to results were overdone.

Answer

Hi Peter,

MP1 is certainly offering some potential value to investors after correcting well over 60% during the last 6-months, more than double most of the growth sector. We do believe the stock has decent long term prospects for its elastic interconnection services due to the growth in cloud demand and MP1’s market leader position. However the recent quarterly was a disappointing report and its still hard to value this $1.3bn growth business.

One for the brave / aggressive investor until we see better numbers over the quarters ahead.

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Megaport (MP1)

LAST UPDATED 06/05/2022 11:44

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