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Eleanor Swanson, Firetrail - Stock tip: Megaport

Cliona O'Dowd and Glenda Korporaal
The Australian
Dec 3, 2021

Firetrail Investments’ Eleanor Swanson has tipped ASX listed telco software company, Megaport, as the best stock for 2022 at the annual Sohn Hearts & Minds Conference.

Swanson said the company, which was founded in 2013 by Australian entrepreneur Bevan Slattery, has the potential to grow into one of the largest telcos in the world.

She said Megaport was “the most exciting tech adventure this decade.”

She said its network was faster, more flexible and much cheaper than those of traditional telecommunications companies and had loyal customers who continued to increase their spend by 50 per cent a year.

She said the company, which is currently trading around $20 a share, with a market capitalisation of $3bn, had the potential to double its share price to $40 giving it a market capitalisation of more than $6bn by the end of next year.

Swanson, an early enthusiast for Afterpay at Firetrail, said Megaport was now growing at 30 per cent a year and was doubling the size of its potential market share to $14bn.

The company has delivered a return of 55 per cent over the past 12 months.

But she said its recent deals with five US networks including Cisco and VMware had given it a “sales force army” of 40,000.

She said Megaport’s customer base was set to take off as “more than 40,000 salespeople pounded the pavement telling businesses around the world about their story.”

“In 2022 Megaport will work with the giants of industry to deliver a better network to thousands of businesses.”

“The little challenger network is now on the precipice of greatness.”

This article was originally posted by The Australian here.

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