A lot of investors like to look to tech shares to generate big returns in the internet services and cloud space thanks to rising demand and connectivity around the world.
Megaport Ltd (ASX: MP1) is a local Australian business founded by tech and internet services entrepreneur Bevan Slattery that has more than doubled in value since December 2015.
The company provides enterprise clients a service in that its technology lets a heavy internet user (such as a large financial services business) adjust how much bandwidth (connected to the cloud) it uses depending on demand.
According to Megaport its services can help a client save money with it steadily signing up new clients since its listing.
Last month it raised $60 million from investors to fund its growth plans in the U.S. and on March 13 the analysts at Goldman Sachs slapped a $4.75 12-month share price target and 'buy' rating on the business.
On the capital raising and its forecasts Goldmans stated, "we believe an equity raise of this size should be adequate to get MP1 to cash flow/EBITDA break even, which we forecast for 2H21.".
As an unprofitable business Megaport remains high risk, but could tick the boxes for small cap enthusiasts and could be worth some further research.
