Megaport Ltd's stock surged 7.72% during intraday trading on Wednesday, marking a significant upward movement for the connectivity services provider.

The rally follows a positive analyst report from Morgans, which maintained a buy rating on the stock. Analyst Nick Harris highlighted potential catalysts for the stock to rerate, particularly as the company proves the value added through its recently acquired compute-as-a-service platform. Harris also identified margin improvement as another potential catalyst for shares and raised his EBITDA targets by 22% for fiscal 2027 and 15% for fiscal 2028, citing lower operating-cost expectations. Morgans increased its target price by 3.2% to A$16.00.