Financial services company Canaccord Genuity predicts positive outcomes from the data centre expansion of Macquarie Technology Group.

The company has enhanced its IC3 Super West data centre, with Canaccord maintaining a ‘buy’ rating and a price target of A$87.50.

For 2023, Macquarie Technology posted profit after income tax attributable at A$17.7 million, a significant increase from A$8.5 million the previous year.

Canaccord believes that the increased planned IC3 Super West capacity could lead to further potential improvements, catering to the demand for AI workloads.

Furthermore, the brokerage contends that the absence of foregone consulting earnings from future periods will not dampen its optimistic outlook for the stock.

Currently, among analysts, four rate the stock as ‘buy’ or higher and two as ‘sell’; their median price target is A$74.65.

As of the last close, the stock has increased by 9.6% this year.

Macquarie Technology Group (ASX:MAQ) is a data center operator that provides integrated solutions for managing IT infrastructure.