If you're looking to boost your portfolio with some growth shares, then you might want to look at the one listed below.
Here's why the NEXTDC Ltd (ASX: NXT) share price could be in the buy zone for growth investors.
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What is NEXTDC?
NEXTDC is a data centre operator that provides businesses with a range of services. This includes Data-Centre-as-a-Service (DCaaS), Data Centre Infrastructure Management-as-a-Service (DCIMaaS), and Professional Services.
In respect to DCaaS, this service provides businesses with hyper-scale colocation. This is secure, high-density data centre space with redundant power supply and support services. It sees customers host their own infrastructure, using the facility as an extension of their own property.
Whereas DCIMaaS sees the company's ONEDC cloud platform allow the centralised management of data centre assets in NEXTDC facilities. This delivers businesses real-time intelligence to their decision-makers, for a monthly subscription per rack.
Demand for its services has been growing at a rapid rate in recent years and shows no signs of slowing. In fact, a significant amount of future capacity has already been contracted to its customers. This alone has the potential to underpin solid earnings growth in the coming years.
Management is also aiming to bolster this with potential expansions internationally and has its eyes on the Singapore and Tokyo markets. Earlier this year the company opened offices in these markets.
Is the NEXTDC share price good value?
One leading broker that sees a lot of value in the NEXTDC share price is UBS. It currently has a buy rating and $15.40 price target on its shares.
Based on the current NEXTDC share price of $11.01, this price target implies potential upside of almost 40% over the next 12 months.
UBS appears confident that NEXTDC is well-placed for growth over the coming years.
