The Match Out: Local shares show some ticker, Megaport (MP1)...

The Match Out: Local shares show some ticker, Megaport (MP1) burns shorts

Megaport (ASX: MP1) $8.99
MP1 +33.78%: network connectivity business Megaport saw shares rocket to a 9-month high today on a small upgrade to FY23 earnings and a strong runway into FY24. The business went through an aggressive cost-cutting program in FY23 which looks to be bearing fruit earlier than thought under the guidance of a new CEO just 8 weeks into the role. Normalized EBITDA is now expected to be between $19-21m, up 17% at the midpoint while also confirming they were net cash positive in Q4 despite $2.6m of redundancy payments due. Given the progress, Megaport said it is likely to upgrade FY24 guidance (EBITDA of $41-46m) at their FY23 results next month, and they have cancelled an expensive $25m debt facility with HSBC. More than 6% of MP1 shares were held short-sold before the announcement also supporting the squeeze higher.