Citi BUY | Price Target $19.53Strong demand in Sydney and...

Citi BUY | Price Target $19.53

• Strong demand in Sydney and Melbourne are assisting in selling remaining capacity (one of NXT’s customers is TikTok), with S3 to be fully contracted within 12 months

• “We remain confident on the medium-term outlook and continue to expect strong bookings in the near-term.”

Goldman Sachs BUY | Price Target $18.80

• The broker notes that NXT’s pipeline of growth exceeds 1GW for the first time

• Over 100MW+ of AI-related contracts have been secured

• “We believe the company has a compelling growth profile and a proven and profitable business model, noting it trades on a growth-adjusted discount vs. peers, which we view as unjustified.”

Macquarie OUTPERFORM | Price Target $20.00

• NXT will double in size in the next few years, driven by a record contract year expected in FY24

• Contracted utilisation from hyperscale customers provides visibility and the medium-term story for AI & transition to cloud remains

Morgan Stanley OVERWEIGHT | Price Target $20.00

• NXT has a track record of high-quality data centre developments and operations

• The broker likes NXT’s scalable model, structural drives, and network effect.

• The company is also moving into international markets, which the broker believes could “bring higher risk/return for equity holders”

• Add to this, the company’s annuity model that brings “strong earnings probability and comfort”

UBS BUY | Price Target $20.10