Morgan Stanley rates NXT as Overweight (1) -
The company has announced greater connectivity with Google Cloud. Google is investing to deploy its first domestic public cloud computing power directly in an Australian data centre, rather than just offering an on-ramp to all but enterprise customers.
Morgan Stanley believes this will improve connectivity, bandwidth and latency for the bulk of NextDC customers.
Overweight rating reiterated. In-Line industry view. Target is $9.20.
Target price is $9.20 Current Price is $7.35 Difference: $1.85
If NXT meets the Morgan Stanley target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $7.94, suggesting upside of 8.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY18:
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Morgan Stanley forecasts a full year FY18 dividend of 0.00 cents and EPS of 2.80 cents.At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 262.50. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 3.7, implying annual growth of -55.7%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 198.6.
Forecast for FY19:
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Morgan Stanley forecasts a full year FY19 dividend of 7.00 cents and EPS of 2.50 cents.At the last closing share price the estimated dividend yield is 0.95%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 294.00. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 5.7, implying annual growth of 54.1%. Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 0.1%. Current consensus EPS estimate suggests the PER is 128.9.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
NXT Price at posting:
$7.15 Sentiment: Hold Disclosure: Held
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