The Nextdc Ltd (ASX: NXT) share price was up 9.76 per cent on Friday, adding to gains of more than 100 per cent over the past year.
Nextdc, which provides data centre outsourcing solutions, connectivity services and infrastructure management software, has a series of data centres across Australia in key locations including Brisbane, Canberra, Sydney, Melbourne and Perth.
As a provider of cloud services and solutions the company is well poised to capitalise on a growing market as businesses increase their reliance on the cloud and they further migrate their data and functions to the benefit of companies such as Nextdc.
Nextdc has been growing steadily over the last five years and is now a profitable company with a market value of about $1.8 billion.
In financial year (FY) 2017 Nextdc reported a profit of about $23 million, significantly up on the $1.8 million profit the company reported for FY 2016.
The company's recent financial performance and its prospects of further growth have prompted optimism from analysts and brokers.
Citi recently retained its buy rating of Nextdc's shares and lifted its price target to $7.02.
Shares in the tech company are currently trading at around $6.30.
Prospects of US equity firm Blackstone gearing up to launch a takeover bid for Nextdc spin-off Asia Pacific Data Centre Group (ASX: AJD), as reported by News Corp (ASX: NWS), has also increased interest in Nextdc.
Although Nextdc recently rejected a chance to buyout Asia Pacific Data Centre Group it still retains a significant stake in Asia Pacific Data Centre.
There is a bit of interest surrounding Nextdc, its financial outlook remains good and if Citi's recent price target is anything to go by there is still a healthy potential upside on Nextdc shares even at today's price.
As such, it appears there are promising indications that Nextdc is still a buy.
