The Megaport Ltd (ASX: MP1) share price is having a strong day on Tuesday.
In afternoon trade, the elasticity connectivity and network services interconnection provider's shares are up 5% to $7.81.
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Why is the Megaport share price shooting higher?
Today's strong gain by the Megaport share price is a bit of a mystery as there has been no news out of the company.
But with its shares down 60% since the start of the year, it's possible that bargain hunters are snapping them up today.
Particularly given how several bullish brokers are predicting major share price gains over the next 12 months.
One of those brokers is Citi, which has a buy rating and $13.90 price target on the company's shares. Based on the current Megaport share price, this implies potential upside of 78% for investors.
Citi commented:
Looking ahead, we see an increase in partner/indirect channel contribution and MVE sales as key to support our medium-term forecasts. While we are cautious on the macro outlook, with ~35% revenue growth expected in FY23e and existing customers underpinning growth (with positive net dollar retention) we maintain our Buy rating.
Who else is bullish?
Goldman Sachs is another broker that is bullish on the Megaport share price. It currently has a buy rating and $10.30 price target on the company's shares.
The broker recently commented:
We remain positive on the product leadership of the company, and the rapidly growing NaaS/SD-WAN addressable markets. […] Overall, we revise FY22-25E EBITDA +16% to +1% given a more disciplined cost base into FY23.
All in all, these brokers appear to believe that this could make Megaport one to consider if you're looking for options in the tech sector and have a higher than average tolerance for risk.
