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Australian Stocks: Here’s Why Macquarie Technology (MAQ) Shares Soared 9%
Global Markets

Australian Stocks: Here’s Why Macquarie Technology (MAQ) Shares Soared 9%

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Australia-based Macquarie Technology’s stock gained 9% today after the release of its results for the half-year ended December 31, 2023.

In key news on Australian stocks, shares of Macquarie Technology Group (AU:MAQ) soared by 9% after it unveiled strong results results for the first half of FY24. The company also highlighted that it is actively pursuing additional data centre acquisitions in response to increasing customer demand for cloud and artificial intelligence (AI) services.

Macquarie Technology Group, earlier known as Macquarie Telecom, is a leading Australian provider of data centre, cloud, cybersecurity, and telecommunications services.

Key Insights from H1 FY24 Results

Macquarie reported a 5.1% rise in revenue to AU$181.3 million as compared to the same period of FY23. The company generated 95% of its revenue from monthly recurring sources. Speaking of its segments, the company’s Cloud Services and Government division experienced a revenue increase of 7.3%, while the Telecom segment’s revenue grew by 1.8%.

The company generated a significant 74% surge in net profit after tax to AU$14.8 million. The profits were driven by the reduced interest costs, as the company closed its debt facility in June 2023. The bottom line also gained from lower depreciation and amortization expenses.

In terms of outlook, Macquarie projects its EBITDA in the range of about AU$108 million to AU$111 million for FY24. This forecast incorporates the company’s data centre EBITDA, estimated at AU$34 million to AU$35 million.

What is the Share Price Target of Macquarie Technology?

Following the results, Chris Gawler from Goldman Sachs reiterated his Buy rating on the stock. He also raised his price target from AU$77.7 to AU$82.1, forecasting an upside of 5.56%.

According to TipRanks, MAQ stock has a Strong Buy consensus rating based on three Buys and one Hold recommendation. The Macquarie Technology share price target is AU$80.33, which is around 3.16% above the current trading level.

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