It certainly has been a solid three months for the Nextdc Ltd (ASX: NXT) share price.
During this time the data centre operator's shares have risen a massive 27% to an all-time high of $5.24 today.
By comparison, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has gained 3% over the same time period.
Is it too late to invest in NEXTDC?
I don't believe it is and I'm not alone in this view, either.
As I mentioned recently, one leading broker still believes there is the potential for its shares to climb over 15% higher from where they trade today.
According to a note out of Citi in September, the broker has a buy rating and $6.03 price target on NEXTDC's shares.
Citi is bullish on NEXTDC due largely to the fact that the company is investing heavily to increase its capacity.
This is being interpreted as a sign that demand from existing clients is increasing substantially and the broker has pointed to capacity additions being a leading indicator of revenue and profit growth in the past.
Should you invest today?
While its shares are on the expensive side, I do believe that the rise in cloud computing will lead to ever-increasing demand for its services over the coming years.
Ultimately I expect this to generate the high levels of profit growth necessary to justify the premium its shares trade at today.
However, its annual general meeting is just around the corner. So investors that would like an update on its performance year-to-date before investing may want to hold out until its November 22 AGM.
