9 stories mentioning ASX:ABBUpdated 15d ago
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Aussie Broadband (ASX:ABB) has an average rating of overweight and mean price target of AU$6.07, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)
Aussie Broadband's (ASX:ABB) ability to deliver its fiscal year 2028 ambitions will face limited impact from the threat of satellite internet disruption, Jarden said in a Tuesday report.Starlink could emerge as a structural threat, amid SpaceX's stated ambition to move upmarket into suburban and urban premises. However, Starlink's share gains to date have not come at the expense of NBN connections. Starlink has lifted total household internet penetration, while fixed-line NBN connections have remained stable in absolute terms.Aussie Broadband's group cost growth, excluding acquisitions, will run below the consumer price index, allowing the firm to grow earnings organically ahead of market expectations despite the residential slowdown. It will compound underlying earnings before interest, taxes, depreciation, and amortization at around 21%, from fiscal year 2025 to fiscal year 2028.The investment firm upgraded its rating on Aussie Broadband to overweight from neutral and retained its AU$5.50 per share price target.
Aussie Broadband (ASX:ABB) is expected to translate subscriber growth from both organic and acquisition sources into sustained margin expansion in line with 2028 targets, according to a Monday Jefferies note.Jefferies noted that Aussie Broadband completed its acquisition of the AGL customer base, with subscriber migration expected to finish in the second quarter of fiscal year 2027, while customers from the More and Tangerine deals are expected to migrate by the end of June, although at around 95% of previous estimates.Organic subscriber growth to May was slightly below Jefferies' expected run rate for the second half of the year, the note added.Jefferies kept a buy rating on Aussie Broadband with a price target of AU$6.20.
Aussie Broadband's (ASX:ABB) challenging subscriber growth environment is now reflected in its share price, but a potentially successful execution of the company's fiscal 2028 ambitions is not currently priced in, Jarden said in a Monday note.The company's core subscriber update disappointed relative to market forecasts as momentum slowed, although the results came in just ahead of Jarden's previous estimates.The risk now skews to the upside should the company deliver on its fiscal 2028 target for underlying earning before interest, taxes, depreciation, and amortization of AU$270 million. Jarden's forecast sits at AU$243 million, around 10% below the company's goal.The investment firm said it is increasingly inclined to look through the near-term subscriber softness toward the fiscal 2028 target, with the delivery of a roughly AU$20 million re-platforming program and a rebased but stable core residential book being among the key factors.Aussie Broadband also confirmed the completion of a suite of strategic transactions, including the AGL Telco and Nexgen acquisitions."In our view, the four transactions in six months have re-shaped the equity story from a predominantly organic residential challenger into a larger, multichannel scale platform," Jarden said.It maintained a neutral rating on the company with a price target of AU$5.50.Aussie Broadband shares fell 2% in recent Tuesday trade.
Aussie Broadband (ASX:ABB) completed the acquisition of AGL Telco, AGL Energy's (ASX:AGL) telecommunications business, according to a Monday filing with the Australian bourse.AGL received AU$115 worth of Aussie Broadband shares on completion of the transaction, representing roughly 22 million shares or around 7% of the company's issued capital, the filing said.The company is also on track to complete the migration of connections under its wholesale services deal with More Telecom.The company expects fiscal year 2026 earnings in the middle of the previously disclosed underlying earnings before interest, taxes, depreciation, and amortization guidance range of AU$162 million to AU$167 million.Meanwhile, capital expenditure is anticipated to be at the upper end of the previously provided guidance range of between AU$55 million and AU$60 million, per the filing.
Aussie Broadband (ASX:ABB) surpassed one million broadband connections across its market segments in mid-May, the company said on Wednesday.The "significant milestone" reflects continued demand for the company's service as well as the Australia-based support it provides to residential customers, Aussie Broadband said.The company said it will merge an estimated 210,000 broadband connections onto its network in the first half of fiscal year 2027, following its acquisition of AGL Telco.Aussie Broadband shares gained 4% in recent Wednesday trade.
Aussie Broadband (ASX:ABB) said international mobile roaming is now available for Aussie Broadband mobile customers under new updates being rolled out to the MyAussie and Carbon portals, according to a statement on Thursday.Customers will be able to access 5 gigabytes of data and unlimited calls and texts for AU$5 per day when travelling in Zone 1 countries without switching or acquiring a new SIM card or provider. For customers travelling in Zone 2 and Zone 3 countries, roaming prices will be charged at pay-as-you-go rates.Customers can also choose to opt out of international mobile roaming at any time, either directly through the app or by contacting Aussie Broadband's customer service.Its shares fell 1% in recent trading on Thursday.
Any further changes to Telstra Group's (ASX:TLS) core National Broadband Network (NBN) offering might represent upside or downside risk to the base case for Aussie Broadband (ASX:ABB), with any bundling of mobile and NBN services or modem unbundling, potentially limiting Telstra's share losses and thus market share gains for Aussie Broadband and Superloop (ASX:SLC), according to a Thursday note by Jarden.If any increase in the competitive intensity in the mobile segment occurs, continued pressure on competitor balance sheets as a result of reinvestment requirements may provide Telstra with the ability to increase prices by more than forecast while benefiting from its scale and network superiority.The Origin contract is a material contributor to Superloop's long-term earnings, and the loss of this contract would represent a material downside to the analyst's base case.With continued marketing investment after the MOCN deal, if TPG Telecom (ASX:TPG) is able to materially accelerate net new mobile customer adoption, this would represent upside risk to the analysts' forecasts.However, TPG is not in a position to lead the market and is likely to follow competitor leads on pricing in the mobile segment.New technologies such as 6G mobile or edge computing may require significant capital outlays.Jarden assigned Aussie Broadband a neutral rating with a price target of AU$5.50 per share, Superloop a buy rating and a price target of AU$3.40 per share, Telstra a neutral rating with a AU$5.05 per share price target, and TPG Telecom an overweight rating with a AU$4.30 per share price target.
Telstra Group's (ASX:TLS) fiscal year 2027 National Broadband Network (NBN) price rises will broadly offset its broadband cost of goods sold (COGS) inflation and set a price ceiling that is estimated to pinch Aussie Broadband's (ASX:ABB) and Superloop's (ASX:SLC) margin into the next fiscal year, Jarden said in a note on Friday.NBN wholesale prices will rise 3% to 5% across the five core retail tiers from July 1. It is estimated that Telstra's NBN reseller gross profit will be broadly flat into fiscal year 2027 at the headline level.On Aussie Broadband, the analysts consider price increases across the entirety of their base as unlikely, leading into fiscal 2027. For Superloop, its relative discount at higher speeds provides sufficient headroom to push COGS increases fully through its retail book, though it views headline price increases on the 500 megabits-per-second plan as unlikely.Jarden assigned Aussie Broadband a rating of neutral with a price target of AU$5.50 per share, Superloop a buy rating and a price target of AU$3.40 per share, and Telstra a neutral rating with a price target of AU$5.05 per share.
