Analysts at Jefferies express optimism regarding the efforts of Australian-based data centre operator, NEXTDC (ASX:NXT), to mend the gaps in their sustainability initiatives.

They believe that the company’s vigorous moves to address these gaps will translate into more contract victories, reduced funding costs, and increased profit margins.

For them, sustainability represents a critical area of emphasis for the sector.

They stand by their ‘buy’ rating of NEXTDC (ASX:NXT).

According to Jefferies, ‘NXT has a robust pipeline - AI demand is anticipated in FY24 - and pricing appears on an upswing.

The analysts’ consensus rating is akin to ‘buy’, with an average price target of A$15.3.

The shares of NEXTDC (ASX:NXT) have seen a 38.5% YTD rise as of the last trading close.

NEXTDC (ASX:NXT) is an Australia-based data centre operator.