In a report released today, Nick Maxwell from PAC Partners reiterated a Buy rating on DXN Ltd. (DXN – Research Report), with a price target of A$0.08.
Nick Maxwell has given his Buy rating due to a combination of factors that highlight DXN Ltd.’s growth potential and strategic positioning. The recent signing of their first Data Centre as a Service (DCaaS) contract with a global satellite operator marks a significant milestone, indicating that the company is successfully expanding its market presence. This contract, valued at $3.6 million over five years, not only provides immediate revenue but also establishes a recurring revenue stream through managed services.
Furthermore, the potential for expansion into multiple sites, particularly in the Asia-Pacific region, underscores the scalability of DXN’s business model. The company’s focus on remote modular edge “dark sites” is particularly advantageous for serving defense and government sectors in remote areas, offering cost efficiencies through reduced on-site personnel needs. With revenue guidance for 2025 on track and the anticipation of further details in the upcoming quarterly report, Maxwell’s confidence in DXN’s strategic direction and financial outlook justifies the Buy rating.