DASHBOARD: Digital infrastructure valuation comps for May 2023

Dashboard containing:

• Monthly and annual share price movements for main listed stocks
• Key earnings multiples
• Forward earnings multiples vs forward growth estimates
• Share price movements tracked over last twelve months

Commentary

Key developments

Overall, most listed Digital Infrastructure stocks in the region are down over the last year, with wide spreads in performance among the group. Economic growth is expected to be sluggish relative to 2022, creating uncertain performance for Digital Infrastructure equities.

Cogent Communications

In early May, Cogent announced the closing of its acquisition of T-Mobile’s wireline business (formerly known as Sprint GMG) which offers the legacy Sprint U.S. long-haul network. Cogent believes the acquisition is a strategic fit, however, investors disagreed with the stock falling just shy on 7% in May.

NextDC

NextDC rose around 12% in May due to news that the company is raising A$618 million to fund two new data centre’s in Kuala Lumpur and Auckland, as well as accelerate the fit out of the Sydney 3 centre. These developments support NextDC’s regional expansion strategy into Asia and New Zealand.

Uniti Group (US)

Uniti released its 2023 first quarter results in early May, which reported slight growth in Revenue and EBITDA, suggesting that Uniti remains predominantly resilient despite unfavorable macroeconomic conditions. Investors appealed to this message and the stock has climbed over 6% in May.

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