Megaport Ltd (ASX: MP1) is back on my radar after a pretty wild few months.
The S&P/ASX 200 Index (ASX: XJO) tech stock is up around 44% in 2026, but that figure hides just how much the share price has fluctuated.
Megaport traded below $7 in April, then surged past $20 and eventually hit a 52-week high of $22.98 last month. The shares have since fallen back to $16.93, although they are up 3.74% today.
I think that pullback has made the stock much more interesting.
Here's why I think Megaport shares could still have much further to go.
Image source: Getty Images
FY27 could be a big one
Megaport's FY26 result was strong, but it's the outlook for FY27 that makes me particularly bullish.
Revenue increased 37% to $312.2 million, while EBITDA rose 24% to $77.1 million.
Management is now targeting FY27 revenue of between $620 million and $730 million, along with an EBITDA margin of 38% to 40%.
That would be a big jump from FY26, helped by the Latitude.sh acquisition and the expansion of Megaport's compute business alongside its existing network operations.
There is also plenty of revenue already coming through the door.
Megaport has announced 3 major contracts worth a combined $506 million, which are expected to add around $129 million in annual recurring revenue (ARR).
There's still plenty to deliver over the next 12 months, but I think those contract wins make the FY27 growth outlook very exciting.
Brokers are bullish
The broker outlook is another reason I think the recent pullback looks enticing.
TipRanks currently shows 9 buy ratings and no holds or sells among the ranked analysts covering the stock.
The average 12-month price target is $24.99, which is almost 50% above the current share price.
JPMorgan is the most bullish with a $28 target, while Macquarie is at $27.80, UBS is at $26.40, and Jefferies is at $26.
Morgans, Morgan Stanley, and RBC Capital all have $25 targets.
Even the lowest forecasts remain comfortably above today's price, with Citi at $22.10 and Ord Minnett at $22.
Why it's back on my buy list
What I like most here is that the share price has pulled back while the outlook for the business has improved.
Megaport shares are now more than 25% below their 52-week high, despite stronger FY27 guidance and several large contracts already secured.
Yes, there are still risks around spending and execution, but I think the current price looks much more attractive.
Add in the strong growth, AI exposure, and 50% broker upside, and I think Megaport is a bargain at these levels.
