ASX 200 stock Infratil Ltd (ASX: IFT) has been a standout long-performer.
Over the past 5 years, it has risen 144% at the time of writing.
That's more than triple the S&P/ASX 200 Index (ASX: XJO), which has risen 47% over the same timeframe.
But, is the ASX 200 company a good buy today? Let's find out
Major news announced
Infratil is a New Zealand-based infrastructure business in the renewable electricity, data centre/telecommunications services, airport, and diagnostic imaging sectors.
According to the company, it targets high-return, long-term investments. The company is externally managed by Morrison.
Yesterday, Infratil announced that its data centre business, CDC, had secured about 100MW of new contracted capacity, with 95% of forecast lease revenues now under contract, highlighting strong demand.
Infratil CEO Jason Boyes said the news provides high visibility that CDC remains on track to double FY25 earnings by FY27. Along with other contracts signed since May, around 95% of forecast lease revenues are now under contract.
Riding the AI wave
When investors think of artificial intelligence (AI)-related companies, it is often US-listed companies that come to mind.
For example, the likes of Magnificent Seven companies, Nvidia, Microsoft, or Meta Platforms.
However, this ASX 200 stock is a clear beneficiary of ongoing demand from cloud and artificial intelligence customers.
Is the ASX 200 stock a buy?
ASX investors that remain bullish on the future of artificial intelligence and want exposure outside US companies might be interested in Intrafil shares.
While Intrafil has increased significantly over the past five years, it is down 2% for the year to date. Investors may wonder whether this is an attractive entry point.
Following this announcement, in a 24 September research note, Macquarie Group Ltd (ASX: MQG) affirmed its outperform rating.
The broker also increased its price target 4% from NZD$12.47 to NZD$12.91. This upgrade was partly attributed to "guided densification at CDC's MP campus and yesterday's announced increase in contracted FY27 capacity (from 85% to 95%)."
Macquarie cited the following catalysts that could send the stock even higher:
1) CDC HFY26 result and FY27 guidance update; 2) [monthly] newsletter updates, 3) S&P 200 index post inclusion impact, 4) continued non-core asset sale pricing, and 5) Longroad IV progression post BBBA.
