Megaport Ltd (ASX: MP1) shares closed up 9% on Tuesday afternoon at $20.63.

The uptick follows a strong share price rally for the ASX tech shares over the past six months. After slumping to a multi-year low in mid-April, the shares have rebounded strongly. The share price started trending higher in mid-April before quickly picking up pace in mid-May.

Megaport shares have now climbed 204% higher since late-March, and they’re also up 73% for the year-to-date.

What has driven the rebound in Megaport shares?

Megaport shares rebounded strongly in May thanks to a run of good-news announcements and a sharp improvement in investor sentiment.

The software-defined network (SDN) service provider has confirmed several new contracts since late-April, including a three-year compute and storage contract with a total contract value (TCV) of approximately US$25.1 million (A$35.4 million), and three additional binding contracts with two US AI customers, worth a TCV of approximately US$183 million and annualised recurring revenue (ARR) of approximately US$65 million. 

In early June, Megaport went into a trading halt ahead of the launch of a new fully underwritten $827.3 million entitlement offer. The company completed the institutional component of the offer, priced at $14.30 per share, on the 5th of June.

In August, Megaport also posted a huge 37% increase in revenue, a 24% increase in EBITDA, and a 62% hike in group annual recurring revenue for FY26. The results came in at the high end of guidance.  

Why are the shares flying higher again this week?

The rebound has picked up pace this week after the company announced that it has locked in almost $1 billion of news AI deals. 

Ahead of the market open on Tuesday, Megaport posted a note to the ASX confirming it has signed three new AI infrastructure contracts through Megaport’s Latitude.sh business. Two are with new customers, and one is with an existing customer.

The deals are worth roughly $978.6 million in total. Megaport will receive around $322.6 million in prepayments, with roughly $281.5 million coming from one new customer before services are delivered.

Megaport said that once everything is up and running, it expects its pro forma ARR to reach around $1.1 billion.

After a difficult start to 2026, it’s been tailwind after tailwind for Megaport shares over the past few months.

So are the shares now trading around fair value, or is there more upside left? 

Here’s what the experts think.

Megaport shares: Buy, sell or hold?

After today’s impressive update, I expect some experts could revise or upgrade their expectations for Megaport shares in the coming days.

But at the time of writing, brokers are very bullish about where the shares could travel to next.

Market Index data show that all brokers agree on a strong buy rating for Megaport shares. The $24.66 average target price implies a potential 22% upside, at the time of writing.

According to TradingView data, the majority of analysts (15 out of 16) also have a buy/strong buy rating on the shares.

The average $26.26 target price implies a potential 29% upside at the time of writing. However, some are even more bullish and project the shares to rise by up to 65% to $33.52 over the next 12 months.

The post Megaport shares fly 204% in just 6 months. Can they keep climbing? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• ASX 200 holds steady as investors brace for a big afternoon
• Megaport shares on watch after locking in almost $1 billion of new AI deals
• Megaport lifts FY27 outlook after landing $1B in new AI infrastructure deals
• Codan vs Megaport: Which ASX Tech Stock Has More Upside?

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was another positive day for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this Tuesday, despite the news of another interest rate hike from the Reserve Bank of Australia (RBA).

The markets weren’t really sure what to do for much of the session, with the ASX 200 spending time in both positive and negative territory. The bulls ended up winning the day, though, with the index closing up 0.34% to 8,709.3 points.

This turbulent-but-positive Tuesday on the ASX came after a decidedly more negative start to the American trading week overnight.

The Dow Jones Industrial Average Index (DJX: .DJI) had a Garfield-esque start to the trading week, dropping 0.67%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was hit even harder, falling 0.92%.

But let’s get back to ASX shares now, though, and take stock of what the various ASX sectors were up to today.

Winners and losers

Despite the ASX’s optimism, we still saw some sectors that couldn’t hold water.

The most conspicuous of those were utilities shares. The S&P/ASX 200 Utilities Index (ASX: XUJ) was hit hard, plunging 0.82%.

Energy stocks were also on the nose, with the S&P/ASX 200 Energy Index (ASX: XEJ) slumping 0.72%.

Real estate investment trusts (REITs) weren’t popular either. The S&P/ASX 200 A-REIT Index (ASX: XPJ) retreated 0.21% today.

Financial stocks couldn’t break even, evidenced by the S&P/ASX 200 Financials Index (ASX: XFJ)’s 0.13% dip.

Communications shares were next. The S&P/ASX 200 Communication Services Index (ASX: XTJ) sank by 0.13% this Tuesday.

Our last losers were consumer staples stocks, with the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) sliding 0.06%.

Turning to the winners now, these were led by tech shares. The S&P/ASX 200 Information Technology Index (ASX: XIJ) enjoyed a resurgence this session, roaring 4.61% higher.

Mining stocks also ran hot, illustrated by the S&P/ASX 200 Materials Index (ASX: XMJ)’s 1.02% spike.

Consumer discretionary shares proved popular too. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) shot up 0.72% this session.

Gold stocks were in demand, with the All Ordinaries Gold Index (ASX: XGD) adding 0.63% to its total.

We could say something similar about industrial shares. The S&P/ASX 200 Industrials Index (ASX: XNJ) advanced 0.36% today.

Finally, healthcare stocks got in under the wire, as you can see from the S&P/ASX 200 Healthcare Index (ASX: XHJ)’s 0.22% improvement.

Top 10 ASX 200 shares countdown

Coming in hottest on the index this Tuesday was Codan Ltd (ASX: CDA). Codan shares rocketed a massive 23.93% this session to close at $64.43 each.

This came after the company reported its first-half profits, which clearly delighted the market.

Here’s how the other winners pulled up at the kerb:

ASX-listed company	Share price	Price change
Codan Ltd (ASX: CDA)	$64.43	23.93%
Megaport Ltd (ASX: MP1)	$20.63	9.44%
Sunrise Energy Metals Ltd (ASX: SRL)	$23.06	9.19%
Perenti Ltd (ASX: PRN)	$2.34	8.84%
Pinnacle Investment Management Group Ltd (ASX: PNI)	$13.96	8.05%
Elsight Ltd (ASX: ELS)	$5.05	7.68%
Minerals 260 Ltd (ASX: MI6)	$0.90	7.14%
Electro Optic Systems Holdings Ltd (ASX: EOS)	$11.18	5.67%
Liontown Ltd (ASX: LTR)	$0.95	4.97%
IRESS Ltd (ASX: IRE)	$5.37	4.68%

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• ASX 200 slips as RBA boosts interest rates to 15-year highs
• ASX 200 holds steady as investors brace for a big afternoon
• This ASX tech company just surged past the $10 billion valuation mark after a major profit upgrade
• Megaport shares on watch after locking in almost $1 billion of new AI deals
• Megaport lifts FY27 outlook after landing $1B in new AI infrastructure deals

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems, Megaport, and Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Qantas Airways vs Flight Centre shares: Which ASX travel stock comes out on top?

When Aussies weigh up travel shares, two names stand out: Qantas Airways Ltd (ASX: QAN) and Flight Centre Travel Group Ltd (ASX: FLT). Both are iconic in the tourism sector but offer very different business models and investment profiles. With both now back paying fully franked dividends and facing unique headwinds post-COVID, which travel stock is the better buy today? Here’s what I found digging into the fundamentals, latest prices, and dividend records.

The case for Qantas Airways

Qantas is the national flag carrier, founded in 1920 and today best known for its strong safety record and premium service on regional, domestic, and international flights. Its core operation is flying people and cargo, balanced between its full-service Qantas brand and the value-focused Jetstar arm. Qantas has survived decades of industry shocks, most recently navigating the COVID-19 pandemic’s massive hit to global travel demand.

Three key standouts for Qantas right now:

• Dividend comeback: After pausing dividends during COVID, Qantas resumed payouts in 2025 and is now offering a fully franked yield of 4.43% — slightly higher than Flight Centre’s, with consistent recent interim and final payments.
• Lower P/E ratio: Qantas trades on a price-to-earnings ratio of 10.57, notably undercutting Flight Centre in the current market snapshot, which could appeal to value-minded investors.
• Market strength: With a market cap of $13.51 billion, Qantas is by far the bigger business, giving it deeper pockets and what I see as stronger resilience if conditions worsen.

Qantas is recognised for safety and reliability and is considered one of the best long-distance carriers globally. Its 100% franked dividends may also appeal to income-seeking shareholders.

The case for Flight Centre Travel Group

Flight Centre, launched in 1982, has grown from a single travel shop to a sprawling, multi-brand operation with stores across Australia and overseas. It’s not an airline — it’s a travel retailer and agency, connecting consumers to flights, cruises (with its recent Iglu acquisition in the UK), tours, and corporate travel services. Its business is highly sensitive to discretionary travel demand but looks arguably less asset-heavy than Qantas.

Here’s what jumped out for Flight Centre:

• Dividend stability: FLT resumed and then lifted dividends since travel bounced back, with $0.42 per share fully franked paid out over the last year, close to Qantas’s $0.40, and a yield of 4.13% at current prices.
• Recent M&A activity: Its acquisition of Iglu, a UK cruise specialist in 2026, hints at an active global strategy even as the broader sector remains tricky.
• Smaller size, higher P/E: FLT’s market cap is $2.07 billion — much smaller than Qantas — and its P/E ratio stands at 14.65, higher than Qantas’s but not unreasonable for a company emerging from major disruption.

Flight Centre’s extensive network and global reach are highlighted, but the business remains primarily a travel agent rather than an operator of transport assets.

Valuation comparison

Here’s how the two travel giants line up on the numbers that matter:

Metric	Qantas Airways	Flight Centre
Market Cap	$13.51 billion	$2.07 billion
P/E Ratio	10.57	14.65
Dividend Yield	4.43% (100% franked)	4.13% (100% franked)
Dividend per Share	$0.40	$0.42
EPS	0.845	0.695
Year to Date Return	-10.15%	-29.38%

Recent share price performance

Both Qantas and Flight Centre have had a tough run recently, likely reflecting cost pressures and patchy confidence in the travel sector.

Comparing recent share price action up to 25 September:

• Qantas closed at $8.93, down 1.0% for the day and showing a year-to-date decline of 10.2%.
• Flight Centre closed at $10.18, down 1.3% for the day, but its YTD performance is much worse, with a steep 29.4% fall since the start of the year.

Which is the better buy?

For me, Qantas Airways stands out as the stronger buy right now. It’s delivering a slightly higher, fully franked dividend, trades on a lower price-to-earnings multiple, and has seen less share price carnage this year than Flight Centre. While both companies are exposed to the health of the travel sector, Qantas appears more resilient thanks to its scale, operating profits, and core transport assets.

Flight Centre does have merit with its recent move into cruises and persistent dividends, but its combination of a higher P/E and much weaker share price momentum makes me cautious. If you’re seeking relatively defensive exposure to the travel rebound, my pick would be Qantas, given its more attractive valuation and better recent performance. I’d be watching Flight Centre for a clearer turnaround and further evidence that earnings can recover.

The post Qantas Airways vs Flight Centre: Which ASX travel stock is the better buy today? appeared first on The Motley Fool Australia.

More reading

• Qantas shares are climbing higher again! Time to buy?
• Why I’d buy and hold these ASX passive income shares
• $10,000 invested in Air New Zealand and Qantas shares 3 years ago is now worth…
• These are the 10 most shorted ASX shares
• 3 ASX 200 shares forecast to fly 30% to 40% higher

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.