Financial analysts at Canaccord Genuity have increased their price target on the Australian technology company, Megaport (ASX:MP1) to A$13.40, up from A$11.80.

They state that confidence in Megaport’s management has led to this upgrade, which reflects increased EBITDA estimate upgrades and a reduced cost base.

On Tuesday, Megaport announced it is expecting a 152% to 182% year-on-year growth in their FY24 EBITDA.

Canaccord says Megaport is transitioning to a new Software-as-a-Service business model, thus aligning with the belief that Megaport should be identified as a software-based enterprise.

They also noted that for FY25, both revenue and EBITDA estimates were marginally increased.

The tech company’s stock has seen a hike this year with a rise of 92.6% as of their last closing.

Megaport is an Australia-based technology firm that specializes in providing a global network-as-a-service platform.