Jefferies, JP Morgan cut price target on Aussie Broadband on outlook update

Aussie Broadband

15/07/2024 21:32

** Analysts at JP Morgan cut price target on Aussie
Broadband  ABB.AX  to A$3.30 from A$3.35 on lower EBITDA
forecast for FY25
    ** Brokerage Jefferies trims PT to A$3.10 from A$3.75 
    ** The telecommunications co changes outlook for FY25 after
launching Buddy Telco, its new digital-first challenger brand
    ** Prior to impact of Buddy Telco, ABB provided EBITDA
outlook range of A$135 mln ($91.23 mln) to A$145 mln for FY25
    ** Including impact of Buddy Telco, co updates EBITDA
forecast range of A$125 mln to A$135 mln for FY25
    ** Analysts at Jefferies cut FY24 EPS estimates by 4%, FY25
EPS estimate by 21% and FY26 EPS estimate by 23%
    ** The launch of Buddy Telco product (focused on value end
of market) appears to be an indicator that premium market could
now be saturated and alternate growth avenues needed - JP Morgan
    ** Five of eight analysts rate the stock "buy" or higher,
three "hold"; their median PT is A$4.27 – LSEG data
    ** Stock has fallen 21.3% YTD, as of last close


($1 = 1.4797 Australian dollars)

 (Reporting by Roshan Thomas in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com))