Morgan Stanley upgrades Aussie Broadband on potential multi-year earnings growth

Aussie Broadband

05/03/2024 02:30

** Shares of Aussie Broadband  ABB.AX  rise as much as 3.9%
to A$4.56; set for second straight day of gains, if trend holds 
    ** Morgan Stanley upgrades the telecom provider to an
'overweight' rating and hikes stock's target price to A$5.50
from A$2.40 
    ** The broker says that bearish sentiment that it had on the
stock initially does not hold now since the co's consumer
broadband business is now underpinned by ABB's own new fibre
network, among others 
    ** The broker believes there is considerably more to come,
both in terms of medium-term earnings upside and creation of
shareholder value
    ** Adds that the acquisition of tech co Symbio Holdings will
result in the 8-10% growth for ABB in FY25 
    ** Four of seven analysts rate the stock "buy" or higher,
two "hold" and one "sell" or lower; their median PT is A$4.89 –
LSEG data
    ** Stock has risen 12.6% this year, as of last close


($1 = 1.5368 Australian dollars)

 (Reporting by Archishma Iyer)
 ((Archishma.Iyer@thomsonreuters.com;))