The Megaport Ltd (ASX: MP1) share price has struggled in the past month, but could it go higher?
Megaport shares are currently trading at $6.31, a 3.37% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) is 0.34% in the red today.
Let's check the outlook for Megaport.
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Could the Megaport share price recover?
Megaport shares have plummeted 26% in the last month but one global investment firm is predicting a turnaround.
Megaport is a a global connectivity company with more than 700 data centres around the world.
Analysts at Goldman Sachs have rated the Megaport share price as a buy and have placed a $13.10 price target on the company's shares. This represents a 107% upside on the current share price.
The company is tipped to expand rapidly in the future as public cloud adoption and multi-cloud usage increase. Goldman sees Networking as a Service (NaaS) as a key driver of the company's growth in the future.
The broker sees these factors could create a $129 billion per year market opportunity for the company overall.
Megaport reported $27.9 million in revenue in the third quarter of FY22, a 5% or $1.4 million boost on the previous quarter. The company also reported it had $88.8 million of cash available.
Megaport sold 1577 new services in the quarter, up 6% on the previous quarter, to take total services to 25,936. More uptake of multi-cloud connections via the Megaport Cloud Router and Megaport Virtual Edge products contributed to this growth.
Share price snapshot
The Megaport share price has descended 58% in the past year, while it has fallen 66% in the year to date.
For perspective, the ASX 200 has shed more than 1% in the past year.
Megaport has a market capitalisation of $987 million based on its current share price.
