Morgan Stanley sets AUD 6.70 target for NextDC stock

Published on 10/27/2026 at 19:15 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

FY27 revenue guidance fell to AUD 475.00-500.00 million on October 21, 2026. NextDC stock costs EUR 3.63 on October 27, 2026.

Analyst target and outlook

Morgan Stanley analyst Andrew McLeod set an AUD 6.70 target and Hold rating on October 22, 2026.
NEXTDC cut FY27 net revenue guidance to AUD 475.00 million to AUD 500.00 million from AUD 615.00 million to AUD 640.00 million on October 21, 2026.
NextDC stock costs EUR 3.63 at Lang & Schwarz on October 27, 2026 at 7:08 p.m. CET.

NextDC, AU000000NXT8, Illustration mit AI erstellt.

Morgan Stanley analyst Andrew McLeod downgraded NextDC to Hold and set an AUD 6.70 price target on October 22, 2026, as Markets Insider reported. The euro quotation was EUR 3.63 at Lang & Schwarz on October 27, 2026 at 7:08 p.m. CET.

Guidance reset remains material

NEXTDC revised FY27 net revenue guidance to AUD 475.00 million to AUD 500.00 million from AUD 615.00 million to AUD 640.00 million. The revised underlying EBITDA range is AUD 245.00 million to AUD 265.00 million, down from AUD 385.00 million to AUD 410.00 million.

The figures came from the October 21, 2026 release on delays to power works at the M3 Melbourne data center. The announcement said the next increase in grid supply is expected in FY28, deferring delivery and billing of contracted capacity. EQS also reported that liquidity stood at AUD 8,675.00 million on September 30, 2026.

ASX price and valuation

On the ASX, NextDC last traded at AUD 5.75 on October 27, 2026 at 4:20 p.m. AEDT, up 3.79 percent from AUD 5.54. The same quotation showed a 52-week range of AUD 5.07 to AUD 16.78 and a market capitalization of AUD 4.4 billion.

The company reported FY26 net revenue of AUD 405.00 million, up 16.00 percent from FY25, while underlying EBITDA reached AUD 248.80 million, up 15.00 percent. Contracted utilization rose 202.00 percent to 740.00 megawatts, according to the FY26 earnings presentation carried by Yahoo Finance.

What does the revised outlook change?

The revised guidance removes the affected M3 contracts from the FY27 forecast until their contribution can be estimated reliably. The company also reduced FY27 capital expenditure guidance to AUD 4,500.00 million to AUD 5,000.00 million from AUD 5,250.00 million to AUD 5,750.00 million.

NEXTDC plans to announce the outcome of its capital expenditure review by its annual meeting on November 20, 2026. The investor calendar also points to a half-year reporting period ending December 31, 2026, while the M3 planning decision is expected in 2027.

Analyst target remains above ASX price

Morgan Stanley's AUD 6.70 target is 16.52 percent above the ASX price of AUD 5.75. The target remains a separate analyst assessment, while the revised guidance provides the more immediate operating reference for the stock.