Nextdc Ltd

NXT: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$63.00	Kmfj	Mxmjzqkd

Midsize Data Centre Firms Like NextDC Will Be Attractive to Acquirers If the Market Sells Them Off

Matthew Dolgin

Jun 21, 2022

With NextDC’s stock briefly touching 4-star territory recently based on our AUD 11 fair value estimate, we think it should be on investors’ radar should a further pullback occur. The broader environment for data centres and the consolidation of many smaller competitors—similar to NextDC—lead us to bring our uncertainty rating down to medium, and we believe the stock has a floor under which its stock price is unlikely to persist.

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