NextDC Bull Flags Strategic Value of Existing Capacity
Dow Jones10-21 08:01
0001 GMT - NextDC's bull at Macquarie thinks the potentially costly delay to its M3 data-center expansion reinforce the strategic value of its existing assets. One of the investment bank's analysts tells clients in a note that while the M3 delay is negative, it is asset-specific. Because the issue is power availability, NextDC's impacted customer will find alternative capacity difficult to secure, the analyst says. With options for alternative suppliers highly limited, the M3 delay reinforces the worth of NextDC's power-secured capacity, the note adds. In summary: "Scarcity is immense." Macquarie has a last-published outperform rating on the stock and a target price of 19.70 Australian dollars. Shares are down 43% at A$5.25.
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