Megaport Ltd (ASX: MP1) shares are trading in the green again in Wednesday trade, up slightly by less than 0.1% to a four-year high of $19.05 a piece.
The latest increase follows Megaport's strong share price run recently. Its shares are now trading 194% higher than when they dipped to a three-year low exactly two months ago on the 10th of April.
The steep recovery means the shares are now up 57% year to date and 39% higher than 12 months ago.
Image source: Getty Images
What caused Megaport shares to rebound?
A crash in investor confidence sent ASX tech stocks, including Megaport, plummeting in late 2025 and into early 2026.
While many tech shares have struggled to pick up pace, Megaport shares rebounded strongly in April thanks to a run of good-news announcements and a reversal of sentiment.
In late April, the software-defined network (SDN) service provider confirmed that it had secured a three-year compute and storage contract with a total value of approximately US$25.1 million (A$35.4 million) through its recently acquired Latitude.sh business.
The company also reaffirmed its FY26 combined guidance in early May.
Later in May, Megaport announced it had secured three more binding contracts with two US AI customers, worth a total contract value (TCV) of approximately US$183 million and annualised recurring revenue (ARR) of approximately US$65 million. Two of those three contracts have 36-month terms, providing visibility into revenue.
Earlier this month, Megaport went into a trading halt ahead of the launch of a new fully underwritten $827.3 million entitlement offer. The company completed the institutional component of the offer, priced at $14.30 per share, on the 5th of June.
The run of contract wins, confirmation that the business is on track for FY26, and the entitlement offer have rallied investors. It looks like many have flocked to buy the shares while they're still trading at a good value.
What can we expect for the remainder of 2026?
I think we'll see a lot more out of Megaport shares this year, and it looks like analysts agree.
TradingView Data shows that the majority of analysts (12 out of 14) have a buy or strong buy rating on the ASX tech shares. The other two have a hold rating.
The average $21.72 target price implies a potential 15% upside over the next 12 months, at the time of writing.
But some are even more bullish. Some analysts are forecasting a maximum target price of $27.80 over the next 12 months, implying Megaport shares could increase another 47%.
UBS is one broker that is bullish on Megaport shares. It renewed its buy rating and raised its 12-month price target to $24.20, up from $16.70, earlier this month. The broker said it has been and notes that contracts secured since November have an annual recurring revenue 6 times larger than the acquired business. With accelerating AI and cloud demand, cross-selling opportunities, and balance sheet capacity, UBS believes Megaport has the potential to secure even more contract wins.
The team at Macquarie are also positive about the outlook for Megaport shares. The broker recently confirmed its buy rating and lifted its 12-month target to $27.80, up from $26.30 previously.
But Morgans downgraded its rating earlier this week, to accumulate, from hold previously, but with a listed $21 target price. The broker said that the move comes on the back of the company's huge share price increase over the past month.
