Why this fundie thinks Megaport (ASX:MP1) shares are 'the most exciting tech adventure of this decade'

This fund manager expects plenty of upside for Megaport in 2022…

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The Megaport Ltd (ASX: MP1) share price is pushing higher today despite a lack of news from the company.

At the time of writing, the global software company's shares are fetching $20.95, up 1.85%. The Megaport share price has gained 8.6% in the last month alone. However, these returns could be the tip of the iceberg if Firetrail Investments' Eleanor Swanson is on the money.

The fast-growing cloud-based telecommunications business has been tipped by Swanson at the Sohn Hearts & Minds Investment Conference.

Why are Megaport shares a top pick for 2022?

A founding partner of Firetrail, Swanson is no stranger to picking stock market winners. In fact, last month we covered the story of how the investment manager landed on Afterpay Ltd (ASX: APT) long before the company rose to the ranks of one of the market's darlings.

Given her success, the stock picker's selection for the Sohn conference was highly anticipated. As we now know, the top pick is Megaport shares. But why exactly is Swanson so bullish on the company — going so far as to say it is "the most exciting tech adventure this decade"?

Fundamentally, the pitch given focuses on Megaport's edge over traditional telecommunication companies. Swanson highlighted that Megaport's network is faster, more flexible, and much cheaper than its incumbents.

Adding to this, the 50% per year increase in spending by customers indicates a loyal customer base. While its existing customer base is growing, so too is its new customer additions.

Swanson noted the deals with large US network providers such as Cisco and VMware have increased Megaport's sales force to 40,000.

In 2022 Megaport will work with the giants of industry to deliver a better network to thousands of businesses. The little challenger network is now on the precipice of greatness.

Eleanor Swanson, Firetrail Investments

Where could it land?

Encouraged by the rate of growth presented by the company, Swanson expects there's a big potential for Megaport shares.

By the end of next year, the stock picker believes it wouldn't be out of the question for the company's shares to be going for $40 apiece. This would suggest a potential upside of around 91% based on the current valuation of Megaport on the ASX.

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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