NextDC shares rocket 27% higher: Buy, hold or sell?

Can NextDC shares keep climbing higher, or have they now peaked?

NextDC Ltd (ASX: NXT) shares are in the spotlight this week after the ASX 200 data centre operator continued rebounding from a 12-month low.

At the close of the ASX on Wednesday afternoon, NextDC shares were 1.27% higher at $14.30 each. 

NextDC shares slumped to an annual low of just $11.26 on the 2nd of April, and have since rebounded 27%. 

The latest increase means the ASX tech shares are now 4% higher over the past week.

For the year-to-date, NextDC shares are up 14%. They're also 36% higher than 12 months ago.

The latest rally comes off the back of a series of new announcements out of the company.

And it looks like investors are excited by the flurry of good-news updates.

Two excited woman pointing out a bargain opportunity on a laptop.

Image source: Getty Images

What did NextDC report this week?

On Monday, NextDC reported a 60% increase in its contracted utilisation. It also confirmed a significant 83% boost of its forward order book and increased its FY26 capital expenditure guidance to between $2.7 billion and $3 billion. This is an increase from between $2.4 billion and $2.7 billion previously. 

Its FY26 guidance for net revenue and underlying EBITDA is unchanged.

NextDC said its recent customer contract wins are driving both increased utilisation and ambitious growth plans, especially at its S4 data centre.

NextDC shares were further pushed higher again on Wednesday when it confirmed it has raised around $1 billion after successfully completing its institutional entitlement offer.

The offer, which was $12.70 per new share and at a ratio of 1 for 5.4 pro-rata, saw a strong take-up by around 98% of eligible institutional shareholders. 

New shares issued under the offer will rank equally with existing shares. They are expected to commence trading on the 30th of April 2026.

The company plans to open a retail entitlement offer to eligible retail shareholders at the same price and ratio from 27th of April where it hopes to raise around $500 million.

NextDC said it plans to use the fresh capital, alongside other funding initiatives, to support its expansion and fulfil its strong pipeline of customer contracts.

Can NextDC shares keep climbing higher?

Analysts are incredibly bullish about the potential for NextDC shares over the next 12 months.

According to TradingView data, all 14 analysts have a buy consensus on the data operators shares.

The average $20.49 target price implies a potential 43% upside at the time of writing. But the maximum $32.29 target price suggests that NextDC shares have the potential to boom another 126%.

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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