This ASX growth stock has been smashed in recent months. Shares in Megaport Ltd (ASX: MP1) are down around 39% year to date and roughly 49% over the past 6 months, hovering near a 52-week low.
That kind of drop would normally scare investors away. But brokers are taking the opposite view on this ASX growth stock. Many see the sell-off as an opportunity — not a warning sign.
So, could now be the perfect time to jump in?
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Key enabler cloud computing
Megaport is a network-as-a-service provider. In simple terms, it helps businesses connect to cloud services like AWS, Microsoft Azure, and Google Cloud through its global software-defined network.
Instead of building their own infrastructure, customers can quickly scale connectivity up or down. This makes the ASX growth stock a key enabler of cloud computing, data centres, and AI-driven workloads.
Rapid growth, relative low cost
Megaport is exposed to powerful long-term tailwinds. Demand for cloud computing, artificial intelligence, and data transfer continues to grow rapidly.
The company's platform is also highly scalable. Once built, it can add customers with relatively low incremental cost — a key feature of successful tech businesses.
Importantly, analysts expect strong growth ahead. Forecasts suggest revenue could grow more than 20% annually, with earnings accelerating even faster as the business scales.
Megaport is also building out new services, including cloud and compute offerings, which could expand its addressable market further.
Fast-moving industry
Despite the growth story, there are real risks.
Megaport is still not consistently profitable. Its recent half-year result showed a statutory loss of about $19 million, which weighed on investor sentiment. This included acquisition costs of $15.8 million that were incurred.
The company also operates in a competitive and fast-moving sector. Larger players and evolving technology could pressure margins or market share over time.
And after years of hype, investor expectations remain high. When results don't fully impress, the price of an ASX growth stock can fall sharply — as recent months have shown.
What next for the ASX growth stock?
Here's where things get interesting.
Analysts remain overwhelmingly bullish on Megaport despite the heavy share price decline. The stock currently carries a consensus buy rating, with the majority of brokers recommending it as a strong buy.
The average 12-month price target sits around $15.58, implying roughly 111% upside from current levels.
And the most bullish analysts see even more potential for the ASX growth stock. The highest price target is $23.98, suggesting a massive 225% upside if the company delivers on its growth plans.
Foolish Takeaway
Megaport is not a low-risk investment. The company is still scaling, still investing, and still proving its long-term profitability.
But that's exactly why the opportunity may exist.
With the share price near a 52-week low and analysts tipping triple-digit upside, Megaport could be one of the more compelling ASX growth stocks to watch in 2026 and beyond.
