Independent data centre operator Nextdc Ltd (ASX: NXT) shares are up 0.7% to $7.72 at the time of writing – a 52-week high for the stock and 79% above its $4.31 share price at this time last year.
UBS yesterday retained its buy rating on the stock, raising its price target from $7.70 to $9.05 on the belief Nextdc will book strong earnings growth over the next decade due to a rising demand for data centres and cloud computing.
Nextdc's strategy of expansion is backed up by a capital raising by way of underwritten institutional placement of $281 million and an uncapped share purchase plan which will fund the acquisition of three commercial properties to meet the explosive demand for data centres across Australia.
The new developments will be in Sydney, Melbourne and Perth.
The good times come despite news Asia Pacific Data Centre Group (ASX: AJD) has commenced legal proceedings against Nextdc in relation to an access rights debacle in relation to three properties owned by Asia Pacific and leased by Nextdc earlier this year.
Nextdc maintain Asia Pacific was acting outside of its lease agreement terms at the time.
Other notable IT stocks at present include Xero Limited (ASX: XRO) and Bravura Solutions Ltd (ASX: BVS) – both emerging players in the software space receiving plenty of attention for their innovative offerings.
