Aussie Broadband Upgraded to Buy from Accumulate by Ord...

Aussie Broadband Upgraded to Buy from Accumulate by Ord Minnett

Aussie Broadband Price Target Cut 15% to A$4.16/Share by Ord Minnett

Ord Minnett raises Aussie Broadband to buy, from accumulate, despite the telecoms company's shock loss of a major contract with Origin Energy. The 130,000 broadband customers serviced under the white-label agreement are set to move to Superloop under a six-year agreement. "The extent of scrip issued to Origin under the Superloop agreement, combined with potential reshaping of the Aussie Broadband agreement, implies that the terms of the contract would have been negatively impacted even if Aussie Broadband had retained it," analyst Ian Munro says in a note. Ord Minnett cuts its FY 2025 and FY 2026 Ebitda forecasts by 11% and 14%, respectively. Its price target falls 15% to A$4.16/share. Aussie Broadband ended Thursday at A$3.55. ([email protected]; @dwinningWSJ)