Megaport (ASX:MP1) has just switched on its platform in Portugal, adding Lisbon on ramps that link local enterprises to more than 1,200 connected data centers and major global cloud providers.
The new Portugal launch comes after a choppy stretch for Megaport’s shares, with the stock down 17.47% over the past week and 12.70% over 90 days. Despite this, it has a 30 day share price gain of 6.36% and a year to date share price return of 41.15%, alongside a 3 year total shareholder return of 58.90% that reflects momentum built over a longer horizon.
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Megaport’s Portugal push lands right after a sharp pullback and a strong year to date climb. Does that mix argue for stepping in now, or for waiting for a cleaner price on the same story?
Most Popular Narrative: 36% Undervalued
Megaport’s most followed valuation storyline points to a fair value of A$27.22, which sits well above the last close at A$17.39. This frames Lisbon as one more data point in a broader growth thesis rather than a one off headline.
The rapid geographic and product expansion, such as the addition of 115 new data centers and numerous new on-ramps and services (Internet, Global WAN, Security), substantially increases Megaport's addressable market and depth with existing clients. This supports both ARR expansion and higher customer stickiness and is cited as a factor that could contribute to outperformance in revenue and long-term gross margins.
See why 60 investors see Megaport as 36% undervalued.
Result: Fair Value of A$27.22 (UNDERVALUED)
Still, the Megaport story can change quickly if hyperscalers deepen their own connectivity offerings, or if heavy expansion spending pressures cash flow and profitability.
Find out about the key risks to this Megaport narrative.
Next Steps
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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